The Oil and Gas Regulatory Authority (OGRA) has notified a drop of over 12 percent in Regassified Liquified Natural Gas (RLNG) for gas distribution companies in October 2022.
According to the new rates, the maximum RLNG prices notified for Sui Southern Gas Company decreased to $15.1 per mmbtu in October as compared to $17.4 per mmbtu reported in September, showing a 13.15 percent decrease.
Moreover, the maximum RLNG prices notified for Sui Northern Gas Pipelines Limited (SNGPL) decreased to $14.7 per mmbtu in October as compared to $16.9 per mmbtu reported in September, depicting a drop of 12.9 percent.
The decrease in prices reflects the downward trend in the international market which has eased in recent months amid fears of a global recession. Besides, the strengthening of the local currency against the dollar also added a slight impact on the RLNG prices in the domestic market.
In March, the average RLNG prices in the local market stood at $25.12 per mmbtu in tandem with the inflated trend in the global market.
The consistent downward trend in the local market is likely to give relief to the local economy including commercial and domestic sectors. The cost of electricity may also reduce if the power-producing companies pass on the impact of the declining RLNG prices in the country.
Source: Pro Pakistan