Ogra approves 38% increase in gas tariff

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has approved 38% raise in gas price for consumers of the Sui Northern Gas Pipeline Limited (SNGPL).


As per details, Ogra has approved increase in gas tariff by Rs107 per Million British Thermal Unit (mmbtu) for the SNGPL.

On the other hand, the tariff for SSGC as been reduced by Rs25.32 per mmbtu but the consumers cannot enjoy new prices due to government’s formula of unified tariff across the country.

The new tariff will be applicable from January 1, 2016.

It may be mentioned here that new tariff has been approved despite the growing anger amongst Pakistanis over continued gas shortage in winter season.

Solving Pakistan‘s energy crisis was a key campaign pledge for Prime Minister Sharif in the run-up to the 2013 general election, and the gas shortage is heaping fresh pressure on his government.

Pakistan‘s energy consumption in general has grown 80 percent over the last 15 years, according to the Pakistan Institute for Petroleum.

A big part of the energy crisis is dealing with massive inefficiencies in the system, such as huge numbers of customers who don‘t pay their bills and widespread theft and losses due to inefficiencies across the energy grid.