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Govt hikes RLNG tariff for Sui gas companies

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  • Increase attributed to rise in RLNG Brent prices.
  • Ogra reduced RLNG prices seven times since January.
  • Pakistan relies on LNG to meet nearly one-third of its demands.

ISLAMABAD: The government has approved a hike of up to half a dollar per MMBTU or 3.8% in the prices of re-gasified liquefied natural gas (RLNG) for both the Sui gas companies for October 2023, The News reported on Tuesday.

The Oil and Gas Regulatory Authority (Ogra) has released a notification announcing that the price of RLNG for consumers of Sui Northern Gas Pipelines Limited (SNGPL) has increased by $0.496 per MMBTU (3.87%) from the previous month. Similarly, the cost of RLNG for consumers of Sui Southern Gas Company (SSGC) has increased by $0.508 per MMBTU (3.8%) compared to September prices.

The spokesperson for Ogra said, “In accordance with the policy guidelines of the federal government, Ogra has determined the RLNG prices for Sui Gas companies, effective from October 1, 2023,” adding that the increase in RLNG prices is attributed to the rise in RLNG Brent prices in the international market. It announced the provisional prices for the RLNG sale for October.

The weighted average sale price for Sui Northern Gas Pipelines Limited (SNGPL) consumers has been set at $13.3332 per Million Metric British Thermal Units (MMBTU), while Sui Southern Gas Company (SSGC) consumers will be charged $13.8716 per MMBTU.

In September, the RLNG prices set by OGRA were $12.8366 per MMBTU for SNGPL consumers and $13.3636 per MMBTU for SSGC consumers.

The fluctuation in RLNG prices was notable throughout the year. Ogra reduced RLNG prices seven times since January, with two increases recorded in May, September, and now in October. The price started declining in January, with a reduction of up to 2.2%. This was followed by further decrease of 4.3% in February, 3.16% in March, and 0.47% in April. It was increased by 1.3% in May 2023 but then decreased again in June (2.55%), July (1.5%), and August (1.3%). In September, there was an increase of 3.08% in the RLNG price.

The recently revised prices for RLNG include several elements, such as charges for LNG terminals, transmission losses, port charges, and margins for state-owned importers, namely Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).

They were determined based on the import of eight cargoes by PSO and one cargo by PLL.

In a noteworthy development, the Asian Platts JKM (Japan Korea Marker) LNG price rose to $18.585 per mmBtu on October 23, 2023, marking a 24% increase from the previous month when it was $14.99 per mmBtu on September 25, 2023. Likewise, since August 25, 2022, (when the LNG price peaked at $69.955/mmBtu), its price has reduced by $51.37/mmBtu or 73.4%. JKM is the LNG benchmark price assessment for the spot physical cargoes.

Pakistan relies on LNG imports to meet nearly one-third of its energy demands. However, when comparing the RLNG prices in October 2023 with those of October 2022, the cost for SNGPL consumers decreased by only 9.8%, while SSGC clients experienced an 8.65% reduction over the year.

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April FDI in Pakistan increased to $358.8 million, according to SBP

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The inflow for April was $358.8 million, up 177% from $132 million in April FY23. Still, that was 39% more than the $258 million from March.

China was the largest investor, with $439.3 million in FDI from the nation between July and April of FY24—the greatest amount—as opposed to $604 million during the same period of FY23. In April, China accounted for $177 million of the total investment.

With $51.93 and 51.89 million invested in Pakistan, the United Arab Emirates and Canada came in second and third, respectively.

The power industry was the main draw for foreign investors in FY24, which ran from July to April. This period’s FDI in the power industry was $637.5 million, compared to $776.2 million the previous year. From $338 million to $460 million this year, Hydel Power garnered more attention.

Continue reading: In FY23–24, Pakistan’s per capita income increased to $1680.

According to a separate data released on Wednesday, Pakistanis’ per capita income increased to $1680 in FY2023–2024.

The size of the national economy grew from $341 billion to $375 billion in the current fiscal year, according to figures made public by PBS.

Throughout this fiscal year, Pakistanis’ yearly per capita income increased by Rs 90,534; the monthly rise was Rs 7,544.

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OGRA forbids the purchase or sale of inferior LPG cylinders.

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The 313 LPG marketing and 19 cylinder-producing companies received notices from the OGRA, which described the act of refilling inferior LPGO cylinders as harmful.

Avoid supplying LPG to unlicensed distributors, the OGRA has cautioned LPG marketing companies. Only approved distributors will be able to sell and buy LPG going forward, per the notification, which states that new SOPs have been developed for the LPG industry.

Additionally, the warning said that the decision was made in an effort to preserve both lives and the business in response to an increase in cylinder blast occurrences.

Price reductions of Rs 20 per kilogramme for liquefied petroleum gas (LPG) were implemented in Quetta on May 3.

There is a reduction of Rs 20 on LPG prices, which means that the price per kilogramme drops from Rs 280 to Rs 260.

The costs of LPG were reduced by Rs 20 per kilogramme earlier, bringing the total decrease to Rs 40 per kilogramme over a few weeks. This is something worth noticing.

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PIA announces a significant student discount.

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According to an airline spokesman, the national flag carrier has recently raised the baggage allowance to 60 kg.

Currently, PIA flies one flight per week on Sundays between Islamabad and Beijing.

The discount may be useful to students who intend to spend their summer vacations in Pakistan or who wish to return home after earning their degrees.

Before, students who wanted to visit China could now receive a 27% reduction on their fares through PIA.

On Eid ul Fitr, the national flag airline also reduced the cost of domestic flights by 20% for both economy and executive economy classes.

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