Unusual RLNG price drives up electricity cost
ISLAMABAD: The cost of regasified liquefied natural gas (RLNG)-based power generation surged by record 242 per cent to Rs47.4 per unit in July, from less than Rs14 in April, after the government purchased five expensive cargoes from the spot market in the month due to the suspension of supplies from Qatar following the US-Iran war. Chiefly because of LNG factor, the power companies have sought a…
ISLAMABAD: Regasified liquefied natural gas (RLNG) prices jumped by a record 242% in July, soaring to Rs47.4 per unit from under Rs14 in April, following the government's purchase of expensive LNG cargoes from the spot market due to the suspension of deliveries from Qatar following the US-Iran war. The spike in RLNG-based power generation costs prompted power companies to request a Rs2.52 per unit increase in fuel cost adjustment (FCA) for September bills, despite 73% of generation coming from cheaper domestic sources.
Nepra has scheduled a public hearing on Aug 27 to assess the validity of the Rs36.5bn extra demand from power companies, with a projected Rs2.52 per unit impact. Despite this significant rise, higher RLNG prices are anticipated in August, adding another Rs36.5bn burden for consumers in the October billing. The Oil and Gas Regulatory Authority (Ogra) announced a record 32% increase in RLNG prices for August, with rates set at $25.83 per mmBtu for SNGPL and $25.09 per mmBtu for SSGCL.
The August LNG imports resulted in a retail RLNG price of approximately Rs7,204 per mmBtu, up from Rs5,450 per mmBtu in July. The revised August rate, based on five spot market acquisitions, marks the highest-ever increase in RLNG prices in the commodity's decade-long history, with July prices around 15% higher than June.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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