A significant increase in the price of re-gasified liquefied natural gas (RLNG) for December formally announced by the Oil and Gas Regulatory Authority (OGRA) on Friday.
Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) will both be subject to the higher tariffs, which represent a significant rise above the rates noted in November.
OGRA Increase RLNG Price For Gas Companies For Dec 2023
As per the announcement made by OGRA on Friday, there has a double-digit increase in RLNG pricing for December, up 10% from the previous month.
This spike affects consumers nationwide by raising the cost of both transmission and distribution.
SNGPL and SSGC Distribution
Additionally, an RLNG transmission price of $13.68 per million British thermal units (MMBtu) has determined for SNGPL.
However, in December 2023, the distribution price rises to $14.81 per MMBtu.
In contrast, SSGC customers will pay $13.26 and $15.45 per MMBtu for transmission and distribution, respectively.
Hike in Price Reason
In a brief release, OGRA linked the spike in RLNG pricing to a significant rise in Delivered Ex-Ship (DES) costs.
However, this suggests that outside forces are pushing up expenses and changing the local market’s pricing structure.
There will likely be a big impact on consumers from the December increase in RLNG costs, especially on households and businesses that depend on natural gas.
Price increases might raise production costs for companies and have an effect on households’ monthly budgets, which would raise questions and spark conversations in the energy industry.
To read our blog on “Pakistan wants to buy an extra LNG cargo to cater gas dearth,” click here.