OGRA rules out link betwee­n propos­ed tariff regime and price moveme­ntsISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Tuesday categorically dismissed the perception that a revised tariff regime proposed for natural gas supplies had brought down stock prices of public gas utilities, saying the investor reaction was based on sheer speculation. She was of the view that stock prices of Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company (SSGC) were on the wane because of the prevailing economic situation and they had nothing to do with the proposed tariff regime and draft Third Party Access Rules 2017. She said the gas utilities, which were earlier running on the fixed rate of return, were opposing the proposed tariff regime, fearing their profitability would take a hit and their stock values would go down. The regulator would also give licences to companies capable of marketing gas under the third-party access rules, she said. Citing the previous consultative sessions, Khan said each sector wanted to avoid the burden following the framing of third-party access rules, which was unjustified.

Source: The Express Tribune December 13, 2017 03:53 UTC