Ogra to Review Decade-Old RLNG Prices on Nov 6

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) will convene a public hearing on November 6 to overhaul Regasified Liquefied Natural Gas (RLNG) prices spanning the past decade, amid litigation and protests over Rs150 billion in retrospective billing targeting industrial and CNG consumers, per Dawn.

Officials confirmed the session will finalize RLNG prices from April 2015, after Ogra issued provisional monthly tariffs to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) sans public input.

Fueled by court orders and escalating consumer outrage, Ogra’s notice encompasses imported gas costs, terminal/port charges, PSO/PLL margins, transmission losses, and exchange rate fluctuations.

Ogra previously released revised RLNG notifications in December 2024 and March 2025 using audited data, enabling SNGPL to backdate bills for seven years. The Lahore High Court’s Multan Bench ruled on September 11 that retroactive billing is “unfair,” mandating stakeholder hearings before price finalization.

Ogra has summoned industrial, CNG, power, and fertiliser consumers to voice objections. The Power Division pegs disputed bills at Rs61 billion (Rs51.3bn differentials + Rs8bn sales tax). Industry and CNG operators insist they cannot bear costs for long-sold products.

Prime Minister Shehbaz Sharif launched an independent inquiry in August, headed by a former federal secretary, into Rs50bn retrospective claims—results pending.

Ogra and SNGPL remain locked in blame-shifting: SNGPL claims Ogra first actualized prices for April 2015–June 2022 in December 2024, then withdrew/reissued in March 2025 post PSO/PLL revisions. FY23–FY25 prices await review.