Oil and Gas Regulatory Authority (OGRA) has recommended Rs 5.90 per litre increase in the price of petrol.
The authority forwarded a summary to the Petroleum Division in which it suggested increasing the price of petrol by Rs5 per litre from October 16.
It also recommended an increase of Rs10 per litre in the price of high-speed diesel.
The final decision in this regard will be taken by the Ministry of Finance after it consultation with Prime Minister Imran Khan.
The increased gas rate will go into effect retroactively on January 1 and end on June 30. In the current fiscal year, this is the second increase in gas prices.
With effect from November 1, 2023, the first increase in gas sale prices, up to a 193% increase, was announced.
The Rs98 billion deficiency of both gas firms will be made up by the proposed gas pricing. In contrast to the predicted income requirements of Rs700 billion for both gas companies, the interim administration had projected to collect Rs980 billion.
Ogra adds that demands for tariff hikes have not yet been decided.
The oil and gas regulator suggested raising the prescribed gas price on average by 23%, to Rs1,590 per mmbtu, from the previous June 2, 2023, average price of Rs1,291, per mmbtu.
The authority notes that the Petroleum Division has duly acknowledged the issue of a cash shortage in the LNG/RLNG supply chain; nonetheless, the upfront amount of Rs27,500 million is not justified, and a 50% claim of Rs13,750 million has been authorized, subject to actualization at year’s end.
The authorities calculated the RLNG cost of service for the SSGC to be Rs14,680 million, or Rs31.77 per mmbtu or Rs33.52 mmcfd.
Also Read: Government Announces Gasoline Price Hike by Rs 5.40
