Sources said officials of the petroleum ministry and Ogra held two marathon meetings here on Friday to discuss the formula for upward revision in gas rates, but due to some complications could not reach the consensus on the issue.
They said the two sides were close to reach a cross-subsidies-based formula and a formal notification for the increase in gas rates is expected on July 1.
New gas rates will also be applicable from July 1, the first day of the new fiscal year.
Under the biannual pricing formula agreed by the government with the World Bank and other international donors, the government is required to revise gas prices upward twice a year - in January and July.
The formula is meant to gradually bring domestic gas rates at par with international market. Donors are also pressing the government to bring the policy of cross-subsidy for gas consumers to an end to remove distortions in the pricing system.
Sources said gas prices in the country were the lowest in the world and need gradual upward revision to bring them at some reasonable level to ensure good return to gas producers and distributors.
It may be noted SNGPL and SSGC had filed their separate petitions with the Ogra some time back, seeking increase in gas rates for the first half of the next fiscal year. The Ogra heard their cases in May last and prepared its determination for the consumption of the petroleum ministry.
As per rules, Ogra is required to workout its determination for each upward revision in gas rates to meet financial requirements of gas distribution companies and send it to the petroleum ministry for its consideration.