The Oil and Gas Regulatory Authority (Ogra) has decided to slash gas prices by over 10% starting July 1. In separate decisions announced on Friday, Ogra reduced the gas price for consumers of Sui Northern Gas Company Limited (SNGPL) by 10.37%, to Rs47.52 per million metric British thermal units (mmbtu), and by 7.95% to Rs34.34 per mmbtu for consumers of Sui Southern Gas Company Ltd (SSGC).
Concerns at Expansion
Ogra expressed concern that both SNGPL and SSGC were undertaking new development projects under the directives of the federal government worth Rs12 billion and Rs2 billion, respectively.
It also lamented the lack of progress on liquefied natural gas (LNG) pipeline infrastructure, despite projects being approved in fiscal 2010-11. The cost of LNG should not be included in the cost of gas and the product may be directly supplied by the producers to the bulk end consumers, like the power and industrial sectors, Ogra added.