Islamabad - Rejecting the Oil and Gas Regulatory Authority (Ogra) recommendation regarding up to 6 percent reduction in the prescribed prices of both the gas utilities, the government has decided to keep the prices unchanged for fiscal year 2020-21.

The Federal government has informed OGRA regarding the decision of keeping the prices unchanged for the current fiscal year, official sources told The Nation.

In July this year Ogra had forwarded two separate determinations on revenue requirements of the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL) for advice on gas sales price for each category of consumers.

Regarding the SNGPL, the regulator had recommended an average prescribed rate of Rs623.31 per million British thermal unit (mmbtu) which was 6 percent lesser than the existing rate of Rs664.25 per mmbtu.

In its petition SNGPL had demanded a prescribed price of Rs1,287 per mmBtu with about Rs174 billion previous year adjustment and about Rs73 billion on account cost of LNG diverted to residential and commercial consumers in winters. Ogra had approved the annual revenue requirement of the company at Rs219 billion for Fiscal Year 2020-21. 

For SSGCL Ogra had determined an average prescribed price for the SSGCL at Rs750.90 per mmbtu against its existing average rate of Rs798.18 per mmbtu. In its petition SSGCL had demanded the price of Rs881.53 per mmbtu with some prior year adjustments and LNG costs. The regulator approved the SSGCL’s revenue requirement for FY2020-21 at Rs270.18 billion.