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Regulatory Regime comprises of:

Under the existing pricing and regulatory regimes, following operating conditions have been laid down:

  • Allocation of gas from different sources is made by GOP while the wellhead prices are fixed by the OGRA per Petroleum Concession Agreements/contracts.
  • Consumer selling price including sales to major consumers (i.e. power, fertilizers etc) are notified by the GOP/OGRA.
  • SNGPL is guaranteed a rate of return @ 17.43% on its net fixed assets in operation (ROA) for meeting financial charges, taxation and a reasonable return to the shareholders.
  • The prescribed price i.e. the price which the company is allowed to retain out of consumers selling price to meet the covenanted rate of return, is determined by OGRA.