In a recent development, the Oil and Gas Regulatory Authority (OGRA) on Friday officially announced a substantial hike in the prices of re-gasified liquefied natural gas (RLNG) for December.
The new prices will apply to both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), marking a notable increase compared to the rates observed in November.
According to the notification released by OGRA on Friday, the RLNG prices for December have witnessed a double-digit surge, with a 10% increase compared to the preceding month. This surge impacts both transmission and distribution prices, affecting consumers across the country.
SNGPL and SSGC transmission
For SNGPL, the RLNG transmission price has been set at $13.68 per million British thermal units (MMBtu), while the distribution price climbs to $14.81 per MMBtu during December 2023.
On the other hand, SSGC consumers will experience a transmission rate of $13.26 per MMBtu and a distribution rate of $15.45 per MMBtu.
OGRA attributes price hike to DES surge
OGRA, in a concise statement, attributed the surge in RLNG prices to a notable increase in Delivered Ex-Ship (DES) prices. This indicates that external factors are contributing to the rise in costs, affecting the pricing structure in the local market.
The December hike in RLNG prices is expected to have significant implications for consumers, particularly industries and households reliant on natural gas. The increase in prices may lead to a rise in production costs for businesses and impact the monthly budgets of households, prompting concerns and discussions within the energy sector.
