Ogra orders 10pc cut in gas rates from July 1

Moving swiftly in the wee hours to meet the deadline given to the International Monetary Fund (IMF), the Oil & Gas Regulatory Authority (Ogra) on Tuesday determined up to 10 per cent reduction in the average prescribed price of natural gas while providing enough material to the government to increase consumer gas rates by about 87pc with effect from July 1. Ogra “determines the revenue requirements of Sui companies for FY25. The average prescribed price per million British thermal units (mmBtu) of gas is recommended as Rs1,635.90, and the decrease in price per mmBtu is Rs179.17”. That works out at 10pc for SNGPL, said a determination forwarded to the petroleum division on Tuesday morning. This will ensure about Rs607.4 billion in estimated revenue during 2024-25 against Rs905bn demanded by SNGPL.