Key Takeaways
- Ogra increased RLNG prices by 32% for August.
- The new rate is $25.83 per mmBtu for SNGPL and $25.09 per mmBtu for SSGCL.
- LPG prices rose to Rs254.32 per kg, up from Rs241.43.
Ogra has announced a significant increase in regasified liquefied natural gas (RLNG) prices, marking the highest level in a decade. The new rate for August is set at $25.83 per mmBtu for Sui Northern Gas Pipelines Limited (SNGPL) and $25.09 per mmBtu for Sui Southern Gas Company Limited (SSGCL).
This increase, which represents a 32% hike from previous rates, is based on the procurement of five spot cargoes due to the inability to secure shipments from Qatar amid the US-Iran tensions.
The surge in RLNG prices has already started impacting fuel costs for power generation. The cost for RLNG-based power generation rose to Rs31 per unit in May, up from Rs13.72 per unit in April.
In a related development, Ogra also increased liquefied petroleum gas (LPG) prices by 5.4% for August, setting the new rate at Rs254.32 per kg, compared to Rs241.43 per kg in July.
The regulator has revealed that it reduced prescribed gas utility prices by Rs134 per unit (7.4%), resulting in savings of around Rs50 billion. These savings will be used for circular debt adjustments rather than providing direct relief to consumers through lower gas prices.
This is the first time Ogra has not uploaded its prescribed price determination on its website, despite its usual practice of sharing determinations with the government and the public. The regulator finally disclosed this information after some interveners raised concerns at public hearings.
The government has maintained silence on the matter, though it informed the International Monetary Fund (IMF) that consumer-end gas prices would remain unchanged.
Experts predict that these price hikes will have a significant impact on various sectors of the economy, particularly those relying heavily on RLNG and LPG for energy needs.
