OGRA Approves Hike in Gas Prices by 45%

The Oil and Gas Regulatory Authority (OGRA) has approved a massive increase in the gas prices just a day after the government increased the price of petroleum products and announced a hike in the electricity tariff. The decision has been taken as the government tries to restore the International Monetary Fund (IMF) loan programme.

Based on the Determination of Estimated Requirement (DERR), OGRA has approved an increase of 45% for the Sui Northern Gas Pipelines Limited (SNGPL), while a 45% increase has been notified for Sui Southern Gas Company (SSGC).

This brings the new gas price for SNGPL consumers at Rs. 854.52 per MMBTU with an increase of Rs. 266.58 per MMBTU, while the price of gas for SSGC consumers will now be fixed at Rs. 1,007.82 per MMBTU after an increase of Rs. 308.53 per MMBTU.

The new gas prices will go into effect on 1 July 2022.

Petrol Prices Increased by Govt

The Federal Government has also removed subsidies on the Petrol Prices in Pakistan and increased the price of these commodities by Rs. 60 per litre in the last two weeks. However, the prices of petroleum products are expected to rise further as Finance Minister Miftah Ismail says that the Government continues to face losses on these commodities.

NEPRA Hike Electricity Tariff

Meanwhile, the National Electric Power Regulatory Authority (NEPRA) has also jacked up power tariff by Rs. 7.91 per unit, which has further increased the burden of inflation on the masses. These decisions are being taken in light with International Monetary Fund (IMF) demands in order to restore the $6 billion loan programme.

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