The Oil and Gas Regulatory Authority (Ogra) has asked the government to issue advice regarding 36 per cent gas price hike for the current fiscal year 2016-17,

An Ogra official informed DawnNews that Ogra has written a letter to the prime minister, and ministries of finance and petroleum to seek necessary advice over its decision of 36% increase in the gas price for the current fiscal year 2016-17.

He said Ogra, in the light of its ordinance, is bound to issue gas price notification till November 15 even if the government does not issue the advice.

The source further said that the regulator itself cannot stop gas price hike on the verbal orders of some ruling elites.

“Government must issue final advice to Ogra regarding said gas price hike otherwise Ogra will have to use legal responsibility given under Ogra Ordinance,” the official said.

Earlier, Ogra in its decision regarding gas price for the ongoing financial year had passed on Rs31 billion burden to the gas consumers by approving hike for the Sui Northern Gas Pipelines Limited (SNGPL) and a cut for the Sui Southern Gas Company Limited (SSGCL) in their gas tariffs.

The regulatory authority had approved an increase in gas price by Rs57.89/MMBTU (Million British Thermal Unit) for the SNGPL and a decrease by Rs65.12/MMBTU for the SSGCL for the ongoing financial year.

It fixed gas tariff at Rs480.63 per MMBTU for the SNGPL and at Rs354.24/MMBTU for the SSGCL for the FY 2016-17. However, consumers of the SSGCL will bear an increase in gas price due to federal government’s formula in this regard.

It may be mentioned here that the gas price of the SNGPL will be applicable to all consumers of both gas utilities of the country under the said formula.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Geopolitical games
Updated 18 Dec, 2024

Geopolitical games

While Assad may be gone — and not many are mourning the end of his brutal rule — Syria’s future does not look promising.
Polio’s toll
18 Dec, 2024

Polio’s toll

MONDAY’s attacks on polio workers in Karak and Bannu that martyred Constable Irfanullah and wounded two ...
Development expenditure
18 Dec, 2024

Development expenditure

PAKISTAN’S infrastructure development woes are wide and deep. The country must annually spend at least 10pc of its...
Risky slope
Updated 17 Dec, 2024

Risky slope

Inflation likely to see an upward trajectory once high base effect tapers off.
Digital ID bill
Updated 17 Dec, 2024

Digital ID bill

Without privacy safeguards, a centralised digital ID system could be misused for surveillance.
Dangerous revisionism
Updated 17 Dec, 2024

Dangerous revisionism

When hatemongers call for digging up every mosque to see what lies beneath, there is a darker agenda driving matters.