The Oil and Gas Regulatory Authority (OGRA) on Wednesday approved a new pricing formula for the CNG sector, per which the price of compressed natural gas would go up by up to Rs 4.81 per kilogramme.
Though the new mechanism will increase CNG prices, it will bring down operating costs and profits charged by gas stations by Rs 15 per kilogramme.
The regulatory authority approved the new pricing formula in light of the Supreme Court’s verdict earlier last week that made way for a Rs 30-cut in CNG prices.
Per the new mechanism, CNG price will be raised by Rs 4.81 per kg in Region 1 (Pothohar, Khyber Pakhtunkhwa, and Balochistan), while the price will be raised by Rs 3.85 per kg for Region 2 (Sindh and Punjab’s areas excluding Pothohar).
OGRA has renamed the head “operating cost” “production cost” and slashed the charges down to Rs 5.75 per kg from Rs 20.80.
On the other hand, the profit charged by CNG retailers has been brought down from Rs 11.20 to Rs 5.28.
OGRA will be presenting the new formula in the Supreme Court today (Thursday) for approval, after which an official notification will be issued for the price revisions.
