The Oil and Gas Regulatory Authority urges government to increase the price of gas by 36%
The Oil and Gas Regulatory Authority (OGRA) has asked the local regulating bodies to increase the price by 36% for the current fiscal year 2016-17. However, several reports suggest that the government of Pakistan has decided to not increase the price of gas for all categories of domestic consumers in the current financial year 2016-17.
“We will not increase the gas price as announced by Prime Minister Nawaz Sharif and are in the process to carve out the formula under which the gas price will not be increased and the revenue requirement of gas utilities — Sui Northern and Sui Southern — will also be fulfilled,” Minister for Petroleum and Natural Resources said.
Moreover, it is worth noting that the federal governments had been told that about the decision to raise the price of gas for all categories on October 6. However, it seems that the verbal order certainly are not enough to hold the price of gas. Also, as per the officials the government could offer subsidy to the people if it does not want to increase the price.
As per the OGRA officials the government is bound to increase the price of gas if it wants to meet the financial needs of the companies. Also, the OGRA will be in violation of the local regulating bodies if the prices of gas were not revised by tomorrow. It is worth noting that the official of the Ministry of Petroleum and Natural Resources, the government is currently working to develop a formula under which the price of gas will not be increased and requirement to generate revenue will also be fulfilled.