Finance & Accounts

Finance Department is a key Department, playing a pivotal role in tariff determination of oil and gas sector as per the powers delegated under the OGRA Ordinance, 2002. Finance Department is primarily involved in the determination of revenue requirement of gas utilities viz; SSGCL & SNGPL. Accordingly, category-wise natural gas sale prices and prescribed prices are notified under the law. Determination and notification of wellhead gas prices on bi-annual basis is also carried out as per the agreements signed between gas producers & GoP. LPG pricing related matters in accordance with the prevalent LPG policy of the Federal Government are also being handled by the Finance Department. Finance Department’s role is not only limited to the natural gas sector, but also includes monitoring of petroleum products including notification of kerosene oil & E-10 after the deregulation effective June, 2011. Since September, 2008, inland Freight Equalization Margin (IFEM) is also being managed by the Finance Department including its monthly computation and notification. During the recent financial year, Federal Government has also delegated the powers of RLNG price determination to OGRA. The same is carried out on monthly basis as per the policy guidelines issued by Economic Coordination Committee. Besides tariff determination process of oil and gas sector, Finance Department has a pivotal contribution in techno-financial and legal matters including tariff related aspects in licensing of natural gas sector, third party access regime, formulation of new tariff regime and efficiency benchmarks, unbundling of sui companies under Government’s gas sector reforms agenda. Finance Department has always remained vigilant while striving a balance between all stakeholders.

a. Computation & notification of ex-refinery price of SKO including ex-depot prices of SKO & E-10.

b. Computation & notifiation of ex-depot prices of E-10.

c. Computation & notification of Inland Freight Equalization Margin (IFEM) for petroleum products (MS,HSD,SKO and LDO).

d. Computation of road and pipline freight for transportation of petroleum products.

e. Monitoring of prices of petroleum products under the deregulated scenario.