Caretaker Govt Drops Another Back-Breaking Gas Bomb On Consumers Before Going Home

The Oil and Gas Regulatory Authority (OGRA) has raised gas prices by 8.6 percent for Sui Southern (SSGC) and 35.13 percent for  Sui Northern (SNGPL) consumers, translating into a burden of Rs. 98 billion to be paid by citizens effective January 1, 2024. This is the second increase in gas rates within the current fiscal year 2023-24. OGRA last week set the average price of gas at Rs 1,291 per MMBtu, up from the previous rate of Rs 1,238.68 per MMBtu fixed on June 2, 2023. The decision, which is aimed at bridging the deficit by June 30, 2024, has already drawn criticism from consumers grappling with exorbitant bills. The International Monetary Fund (IMF) had previously urged the government to streamline the gas pricing mechanism within two years to address the mounting circular debt of the domestic gas sector, currently standing at Rs. 1,250 billion. Under OGRA’s mandate, gas prices are revised every two years, with the government obligated to implement these revisions on July 1 and January 1 of each financial year. The recent adjustment, as per OGRA’s directives, has increased the price for Sui Northern customers to Rs. 1,673.82 per MMBtu, while rates for Sui Southern consumers have spiked from Rs. 1,350.68 per MMBtu to Rs. 1,466.40 per MMBtu. The latest price update, effective January 1, 2024, deviates from the previous rates revision schedule earmarked for July 1, 2024.