The Oil and Gas Regulatory Authority (OGRA) has increased gas tariffs by Rs 435 per MMBTU, addressing a Rs 98 billion shortfall, exacerbating the financial strain on citizens already grappling with inflation.
Effective from January 1 to June 30, this marks the second increase in gas prices for the current financial year 2023-24.
Sui Northern gas tariff surged to Rs 1,673.82 per MMBTU from Rs 1,238.68, and Sui Southern’s tariff rose to Rs 1,466.40 per MMBTU from Rs 1,350.68.
OGRA’s recommended average increase of 23.16% aims to alleviate circular debt, currently at Rs 1,250 billion, per the IMF’s urging for biannual gas price reviews.
The caretaker government aims to decide on a further hike by mid-month, aligning with OGRA’s determination.
Earlier increases in June 2023 and November 2023 saw tariffs rise by up to 50% and 193%, respectively, further burdening consumers.
