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No increase in gas prices, govt to advise Ogra

No increase in gas prices, govt to advise Ogra

ISLAMABAD, NOV 15, (DNA):  The government has decided not to increase the gas prices for all categories of domestic consumers in current financial year 2016-17,

after the letter received from Oil and Gas Regulatory Authority (Ogra) seeking the written advice of the Ministry of Petroleum and Natural Resources on the matter.

“We will not increase the gas price as announced by Prime Minister Nawaza Sharif and are in the process to carve out the formula under which the gas price will not be increased and the revenue requirement of gas utilities —

Sui Northern and Sui Southern — will also be fulfilled,” Minister for Petroleum and Natural Resources said, adding that the government would issue the notification about the zero increase in gas prices.

Earlier, Prime Minister Nawaz Sharif announced that he would not jack up the gas price when Ogra in its determination on February 6 recommended the increase in gas prices by 36 percent.

Under the clause of 8.4 of Ogra Ordinance, in case the government does not respond to Ogra’s decision in 40 days, the prescribed prices of gas will be treated as sale price that will be notified by Ogra.

On November 15, the period of 40 days is going to be over and so the Ogra has under routine activity sent a reminder to the Ministry of Petroleum and Natural Resources asking for written advice on the decision of the regulator, chairperson of the regulator Uzma Adil told media.

She said if the government did not want to increase the gas price it was okay, but Ogra wanted it in written form. The chairperson argued that the Ministry of Petroleum and Natural Resources in the court had submitted its statement

saying that it would not defy the Ogra Ordinance. Under the law, the government had to give the advice in written form on the verdict of the Ogra in 40 days. The officials at Ogra told media,

if the government did not increase the gas price, it was supposed to pick up the financial burden of the gas companies.=DNA

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