ISLAMABAD – The Oil and Gas Regulatory Authority (OGRA) has given its approval for a significant increase in gas tariffs for consumers of Sui Northern Gas and Sui Southern Gas. This decision comes on the heels of a recent approval for a substantial rise in electricity prices.
According to reports, OGRA has sanctioned a 50% increase for Sui Northern and a 42% increase for Sui Southern. This translates to an increase in the per MMBtu rate by Rs415.55 and Rs417 respectively. As a result of this hike, the new prices for Sui Northern consumers will be Rs1,238.68/MMBtu, while for Sui Southern consumers, it will be Rs1,350.68/MMBtu.
The matter has now been forwarded to the federal government for final approval. The government, led by Prime Minister Shehbaz Sharif, is currently grappling with meeting the conditions set by the International Monetary Fund (IMF) following a $3 billion loan agreement.
If the federal government gives its nod, the new gas tariffs will come into effect from July 1. This will impact all domestic, commercial, and industrial consumers.
This development follows last week’s decision by the federal cabinet to approve a considerable increase in the base tariff for electricity, which saw a rise from Rs3.50 to Rs7.96 per unit.
