The Auditor General of Pakistan has highlighted that the Oil and Gas Regulatory Authority (OGRA) has not fulfilled its duty to notify the final RLNG price, leading to a significant loss of Rs. 103 billion.

In the 2023-24 audit report, it was observed that OGRA has failed to set the final RLNG price since the commencement of RLNG imports in 2015.

This has led to numerous payment issues between RLNG buyers and sellers. For instance, a differential amount of Rs. 103 billion had accumulated on SNGPL as payable to PSO and PLL. Additionally, SNGPL is facing legal issues with RLNG consumers due to the non-finalization of the price.

According to Section 6(2)(r) of the OGRA Ordinance 2002, “the Authority administers or establishes prices for those categories of petroleum for which the Federal Government establishes prices and may delegate the function to the Authority from time to time.”

In 2016, the DG (Gas) issued guidelines for determining the sales price of RLNG after obtaining approval from the ECC of the Cabinet and advised implementing the ECC’s decision.

The Audit pointed out that OGRA failed to notify the final RLNG price, leading to an accumulation of Rs. 103 billion.

The matter was reported to OGRA in August 2023. During the DAC meeting on January 03, 2024, OGRA stated that data scrutiny regarding RLNG price determination was in its final stage and that final RLNG prices would be notified by March 2024.

The DAC directed OGRA to notify the final RLNG prices at the earliest, but no further progress was reported by the time the report was finalized.

The audit recommends finalizing RLNG prices promptly and holding accountable those responsible for the delay in finalizing the RLNG price.
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