Petroleum Division rejects media reports about increase in gas price

ISLAMABAD:The Petroleum Division Saturday categorically said the prices of natural gas and Regassified Natural Gas (RLNG) were not being increased on account of the RLNG sold by Sui Northern Gas Compmay Limited (SNGPL) to domestic consumers during the winter season, saying that media reports in this regard have no reality.

“Accordingly, the RLNG price will also not be increased on this account for power and CNG sectors,” official sourcrs told reporter.

Rejecting media reports, they further clarified that the gas company had not incurred any loss in respect of sale of RLNG to domestic consumers during the winter season.

Under the Economic Coordination Committee’s decision taken on May 11, 2018, the sources said, the ‘Gas Banking Mechanism’ had already been approved by Oil and Gas Regulatory Authority (OGRA), “under which RLNG is sold as system gas during the winter season while the same is recovered during the summer season on an on-going and multi year basis.”

These adjustments have been allowed by OGRA on the basis of final accounts of the company on a ring fenced basis in accordance with the OGRA law, they added.

The sources said RLNG was routed to domestic sector during peak winter months to ensure smooth supply of the commodity to consumers during the peak demand period.

“Resultantly, the gas pressure in the domestic sector remained far better this year as compared to the previous years.”