Quarterly gas price revisions likely

The government is set to give the go-ahead to switch over to a new model of quarterly gas price notifications instead of the current six monthly announcements of tariff revisions. The new proposed mechanism for the gas sector is in line with the model followed in the power sector and is designed to give a boost to the financial health of public gas utilities and tackle the challenge of mounting circular debt. Gas companies are also seeking approval of the government to automatically pass on the energy component cost to consumers, like the way electricity firms do. Currently, the Oil and Gas Regulatory Authority (Ogra) holds public hearings and then declares its decision on the revenue requirement of gas utilities, which is sent to the federal government for notifying end-consumer prices.