The Oil and Gas Regulatory Authority (Ogra) has authorized an additional increase in the latest gas rates to address the Rs98 billion shortages.
This will be another blow to the inflation-hit people of Pakistan. In the past week, the rates of electricity and petrol have also increased.
The increased rates will be in effect from January 1, 2024, to June 30, 2024, adding to the burden on the public which is already dealing with increasing inflation. This is the second time the government has raised gas rates in the current fiscal year 2023-24.
This increase in the gas rates will put Rs98 Billion extra burden on the people of Pakistan.
The government increased the tariffs of Sui Northern Gas Pipelines Limited (SNGPL) by 35.13 percent and Sui Southern Gas Company Limited (SSGCL) by 8.57 percent.
On February 2, Ogra proposed an increase of Rs299 in the average gas price to Rs1,590 per MMBTU from the previous average price of Rs1,291, which was decided in June of 2023.
The International Monetary Fund (IMF) has ordered the government to evaluate gas pricing biannually to eliminate cyclical debt.
According to Ogra’s February 2 decision, the cost for Sui Northern gas has increased to Rs1,673.82 per MMBTU from Rs1,238.68.
Similarly, it has raised Sui Southern’s gas rate to Rs1,466.40 per MMBTU from Rs1,350.68 per MMBTU.