ISLAMABAD: With system losses at a record 16.16 per cent, the Oil and Gas Regulatory Authority (Ogra) on Thursday notified up to 2pc increase in the price of Regasified Liquefied Natural Gas (RLNG) for sale to consumers by the two Sui gas companies for February.

Karachi-based Sui Southern Gas Company Ltd (SSGCL) serves consumers in Sindh and Balochistan, and Ogra approved an increase in its system losses from 13 to 16.16pc. On the other hand, Lahore-based Sui Northern Gas Pipeline Ltd (SNGPL) provides gas to consumers in Punjab and Khyber Pakhtunkhwa, and its system losses stood at 8.6pc compared to 8pc earlier.

According to notification, the RLNG`s sale price for SNGPL at the transmission stage increased by 1.96pc to $11.96 per million British thermal unit (mmBtu) against 11.73 per mmBtu in January. The sale price at the distribution stage for SNGPL was jacked up by 1.86pc to $12.90 per mmBtu against $12.67 per mmBtu for January.

The RLNG sale price for SSGCL increased at the transmission stage by 0.55pc and $10.65 per mmBtu from $10.59 per mmBtu last month. The saleprice at the distribution stage for the company was also raised by 0.57pc to $12.67 per mmBtu for February against $12.60 per mmBtu in January. The large difference between the transmission and distribution of about $2 (about Rs560) per mmBtu is mainly because of high losses during distribution.

The overall increase in absolute terms for SSGC`s transmission price amounted to $0.058 per mmBtu and $0.07 per unit at the distribution point.

The increase in RLNG price for SNGPL at transmission was reported at $0.23 and $0.236 per unit for distribution.

Ironically, the RLNG distribution prices for SSGCL, $12.67 per mmBtu and $12.90 for SNGPL were almost $3.94 and $3.72 per mmBtu higher than the Pakistan State Oil`s $8.96 per mmBtu average delivered price ex-ship (DES), respectively. This is mainly because of the fact that both the LNG importers PSO and Pakistan LNG Ltd (PLL) and port authorities also charge profit margins on account of retainage and margins at the rate of 3.15pc and 3.1pc of DES price, respectively, on top of 8.6pc losses of SNGPL and 16.16pc losses of SSGCL.

Ogra said it had increased the RLNG price due to a rise in the cost of supply and DES price in line with policy guidelines issued by the federal government.