The gas providing companies — Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipeline Limited (SNGPL) are set to increase gas price for consumers despite the fact that the Companies have already made three consecutive increase in gas prices during the last two years, reported 24NewsHD TV channel.
Gas prices are revised twice a year under the law, based on determinations by the Oil & Gas Regulatory Authority (OGRA). OGRA has announced public hearing on November 8 to consider Sui Southern Gas Company Limited (SSGC) request for Rs669 per unit (mmBtu) or 53.5pc. The public hearing for Sui Northern Gas Pipeline Limited (SNGPL) request for a hike of 3.66pc or Rs64.16 per mmBtu is scheduled for November 5 (tomorrow). Sui Southern and Sui Northern have already submitted their application in OGRA for seeking increase in gas prices for consumers from July 1, 2024. Sui Southern Gas Company has requested permission from OGRA to to increase gas price by 3.66 percent for Punjab, Khyber Pakhtunkhwa consumers including Islamabad. Sui Northern Gas Company has urged OGRA to allow it to increase the price of gas by 53.47 percent for consumers of Sindh and Balochistan.
SNGPL has sought a hike of Rs64.16 per mmbtu in tariff which, if approved, will jack up the average prescribed price from Rs1746.22 to Rs1810.38 per mmbtu, according to OGRA. The Lahore-based gas utility claimed RLNG cost of service of Rs304.27 per mmbtu for FY25.
On the other hand, SSGCL has projected a shortfall in revenue requirement for FY25 at Rs140bn, seeking a hike in average prescribed price effective from July 1, 2024 to compensate for increase in cost of gas. The Karachi-based company sought a hike of Rs669.07 per mmbtu in the average prescribed price which will take its price from Rs1,251.32 to Rs1,920.39 per mmbtu.
From January 2023 until now, the government has increased the price of gas for domestic consumers 3 times. Gas prices were hiked once in the previous coalition government. Gas prices were increased twice during the caretaker government's short tenure. An additional burden of 953 billion rupees was put on gas consumers in 2 years.
Reporter: Awais kiyani