Gas prices slashed up to 10% for FY 2024-25

The Oil and Gas Regulatory Authority (Ogra) has slashed gas prices up to 10% for the public utilities effective from financial year 2024-25, which will begin in July. The regulator reduced the tariff while determining the revenue requirement of Sui gas companies for FY25. It recommended an average prescribed price of Rs1,635.90 per million British thermal units (mmBtu) for Sui Northern Gas Pipelines Limited (SNGPL), which reflected a decrease of Rs179.17 per mmBtu, or 10%. Ogra calculated the financial impact of previous years’ revenue shortfall at Rs580,585 million compared to the SNGPL’s claim of Rs862,612 million. It was referred to the federal government for an appropriate policy decision and was not included in the initial determination.