ISLAMABAD - The Oil and Gas Regulatory Authority (Ogra) has said that no increase in the gas price for domestic as well as fertilizer feedstock was proposed by the authority.

The spokesman clarified that the news item that had claimed increase in gas prices by 36 percent was not true and gas consumers were not being burdened with Rs341 billion.

He further clarified that determination of price of the natural gas was the jurisdiction of federal government, and instant decisions for FY 2016-17, referred to in a section of press, determined only the prescribed prices.  

Spokesman further explained that the Ogra had issued its decisions against SSGCL and SNGPL petitions for determination of prescribed price for FY 2016-17 on October 06, 2016. In case of SSGCL, Ogra had slashed down its demand by 82.54/MMBTU effective from July 2016, and determined the average prescribed price at Rs354.24/MMBTU. In case of SNGPL, Ogra had determined its average prescribed price at Rs480.63/MMBTU as against company’s demand of Rs480.34/MMBTU. It is, however, pertinent to mention that a decrease of over Rs60/MMBTU and Rs30/MMBTU had been determined by Ogra over prescribed price of FY 2015-16 of SSGCL & SNGPL respectively. In view of the same, contention of gas price hike by 36 percent in current financial year is denied. The decisions have now been sent to federal government that will advise category-wise natural gas sale prices, considering its socio-economic agenda, within 40 days to Ogra. The sale prices as advised by federal government will be notified by Ogra and then be charged to natural gas consumers.

It was further clarified that SNGPL and SSGCL, as per their licence conditions, were entitled to retain 17.5 percent and 17 percent return on their net operating fixed assets respectively. Accordingly, return on assets amounting to Rs19.063 billion and Rs9.718 billion had been provisionally allowed to SNGPL and SSGCL respectively for FY 2016-17.

It was clarified that natural gas consumers, however, will not be burdened as they were protected under the ring-fencing.