The Oil and Gas Regulatory Authority (Ogra) has announced revised natural gas sale prices effective from November 1, 2023, by federal government policy guidelines.
The government, citing the Ogra Ordinance, 2002, has the authority to set sale prices for different gas consumer categories, considering socioeconomic factors and sectoral policies. The interim cabinet approved a significant gas tariff increase of up to 193 percent on October 23, 2023, meeting IMF conditionalities.
The revision addresses a pending adjustment since July 1, 2023, resulting in a revenue shortfall of Rs46 billion (July-September 2023), projected to reach Rs395 billion by June 2024 if unaddressed.
The revised charges include substantial increases in fixed monthly charges for various consumer categories, with adjustments in gas rates for different consumption levels. The government directed revenue from fixed charges to be treated as “non-operating” income for Sui companies to offset socioeconomic losses. Commercial consumers, including cement factories and CNG stations, face significant tariff hikes.
