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Just days after a massive rise in petroleum and energy bills, OGRA approved a 45 percent increase in prescribed natural gas prices for the upcoming fiscal year on Friday.

The regulator has forwarded separate revenue determinations for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited based on the Determination of Estimated Revenue Requirement (DERR) for the fiscal year 2022-23. (SSGC).

According to the decision, the regulator permitted SNGPL to raise gas prices by Rs. 266.58 per mmbtu (45 percent), actually results in annual revenue of Rs. 261 billion. The gas company had requested a price increase of Rs. 1,079 per mmbtu (198 percent) against a revenue stipulation of Rs. 597 billion for the coming financial year.

According to the OGRA confirmation, the financial impact of the previous year"s shortfall of Rs. 265 billion, i.e. Rs. 720.20 per mmbtu, has been referred to the federal govt for a suitable policy decision and is thus not included in the current determination.

The SSGC was granted a price hike of Rs. 308.53 per mmbtu (44 percent), resulting in Rs. 285.2 billion in annual revenue. The company had requested a 45 percent increase in gas prices against a revenue stipulation of Rs. 286.72 billion for the new financial year.

The decisions have been forwarded to the federal govt for advice on category-specific sale prices. According to the notification, any revisions recommended by the federal government will be communicated to OGRA. It went on to say that until then, the existing category-specific natural gas sale prices would apply.