6.6pc rise in gas prices okayed

Criticising the IMF-led gas disconnection of industrial captive power plants, the Oil and Gas Regulatory Authority (Ogra) on Tuesday determined about 6.6 per cent (Rs117 per unit) increase in prescribed natural gas prices to meet about Rs890 billion revenue requirement of the two gas companies during 2025-26. In a late-night determination sent to the federal government, Ogra worked out the average revenue requirement for Karachi-based Sui Southern Gas Company Ltd (SSGCL) at Rs354bn for the next fiscal year and determined its prescribed price at Rs1,659 per million British thermal unit (mmBtu) or about Rs104 per unit reduction from Rs1,762 per mmBtu in FY25. Conversely, the regulator worked out the revenue requirement for Lahore-based Sui Northern Gas Pipelines Ltd (SNGPL) at Rs535bn for FY26 and set its prescribed price at Rs1,895 per mmBTU, about Rs117 per unit higher than the current year’s Rs1,778 per unit to cover an estimated revenue shortfall of Rs43bn next year.