Prime Minister Imran Khan has approved the Oil and Gas Regulatory Authority’s (OGRA) request for increasing gas rates by 46 per cent, a local media outlet reported.
The prime minister has also directed to develop strategies to control gas theft of Rs50 billion. OGRA had determined the gas price hike in June this year.
During a briefing session for the prime minister attended by senior officials, the premier was briefed on the oil and gas sectors.
Officials explained that the price hike was imperative given the current conditions.
Sui Southern Gas Company (SSGP) and Sui Northern Gas Pipelines (SNGP) last week requested to increase gas prices in order to improve their financial conditions. The SNGP said that it was losing Rs230 on each unit of gas.
During the briefing, developments regarding the Tajikistan-Afghanistan-Pakistan-India (TAPI) and Pakistan-Iran gas pipeline were also mentioned.
Prime Minister Imran Khan also directed to ensure that a comprehensive plan to revive the oil and gas sector with clear deadlines be presented before him.
OGRA determined a price hike of up to 186 per cent for the poorest categories of commercial and domestic users whereas rates for other sectors were increased between 27-31 per cent for SSGP and SNGP.
The SSGC needs Rs167 billion during the next financial years while the SNGP needs Rs287bn, according to OGRA.
SSGC supplies gas to Sindh and Balochistan while SNGP supplies to Punjab and Khyber Pakhtunkhwa (KP).