ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Friday notified a meagre (0.1 per cent) reduction in the sale price of Regasified Liquefied Natural Gas (RLNG) by the two Sui gas companies for the ongoing month.

Karachi-based Sui Southern Gas Company Ltd (SSGCL) serves consumers in Sindh and Balochistan, and its system losses at the distribution stage dropped from 16.16pc to 10.6pc.

On the other hand, Lahore-based SNGPL provides gas to consumers in Punjab and Khyber Pakhtunkhwa and its system losses at the distribution stage dropped to 7.47pc from 8.6pc until February this year.

According to notification, the RLNG`s sale price for SNGPL at the transmission stage has been cut by 0.1pc to $11.015 per million British thermal unit (mmBtu) for June against $11.026 per mmBtu in May.

The sale price at the distribution stage for SNGPL was reduced by 0.1pc to $11.78 per mmBtu for current month against $11.79 per mmBtu in May.

On the other hand, the RLNG saleprice for SSGCL has also been decreased at transmission stage by 0.1pc to $9.73 per mmBtu for June against $9.74 per mmBtu in May. The sale price at the distribution stage for the company was also reduced by 0.1pc to $10.865 per mmBtu from $10.874 per mmBtu last month.

Ironically, the RLNG distribution prices for SSGCL and SNGPL are $10.865 and $11.78 per mmBtu, almost $2.72 and $3.64 per mmBtu higher than the Pakistan State Oil`s $8.14 per mmBtu average delivered price exship (DES).

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 3.77pc of DES price on top of 7.4pc losses of SNGPL and 10.6pc losses of SSGCL.

The basket RLNG price was based on a total of 10 cargoes for June, all under two LNG contracts between PSO and Qatar Gas at an average of about $8.14 per mmBtu six cargoes at$8.99andfourcargoes at$6.86per mmBtu. PLL did not import any cargo this month owing to a demand crash.