ISLAMABAD   -   Oil and Gas Regulatory Authority Tuesday increased the prices of re-gasified liquefied natural gas (RLNG) for the consumers of both the Sui Companies by up to 3.2 percent for the month of August 2024. The price for the consumers of Sui Southern Gas Company (SSGC) has been increased by 0.4206 per million British thermal units (mmBtu) or 3.2 percent, while the price for the consumers of Sui Northern Gas Pipelines Limited (SNGPL) has been jacked up by $0.4338 per mmBtu or 2.97 percent as compared the month of July 2024, said a notification issued by the Oil and Gas Regulatory Authority (OGRA). The new prices will be effective from August 1, 2024. According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the weighted average sale price for SNGPL consumers has been set at 14.0065 per mmBtu, while SSGC consumers will be charged $13.5773 per mmBtu. In July 2024, the prices were $13.39 per mmBtu and $13.15 per mmBtu for SNGPL and SSGC consumers, respectively. OGRA attributed the price hike to increased supply charges.

The revised RLNG prices include various elements such as charges for LNG terminals, transmission losses, port charges, and margins for state-owned importers, namely Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL). These new weighted average sale prices have been computed based on the 11 cargoes imported for the month, including 10 cargoes by Pakistan State Oil and one by Pakistan LNG Ltd (PLL). Since LNG is an imported product, it is pegged to international oil prices. An increase in international oil prices means OGRA has to raise prices as well.

Since September 2023, only three months saw a cut in RLNG prices. The month of September 2023 saw a 3.08 percent increase, followed by a 3.87 percent increase in October, a 1.2 percent increase in November, and a significant 10.1 percent increase in December. January 2024 saw a reduction of 7.8 percent, followed by a 9 percent decrease in February. For March again, the prices were increased by 2.57 percent, in April by 1.06 percent and now again its price was jacked up by 6.5 percent for May 2024.The month of June also saw an increase in RLNG prices. However, for July 2024, the regulator had reduced the prices of RLNG for the consumers of both the Sui Companies by up to 8.5 percent. It is to be noted that RLNG is the major contributor to the country’s power generation. A jump in the prices of RLNG increases the cost of energy, which subsequently raises the tariff for power consumers.