The authorities are bracing for another massive increase in the prices of gas owing to the falling revenue of the gas sector, reported the 24NewsHD TV channel on Tuesday.
According to sources, the Sui Northern Gas Pipelines Limited (SNGPL) has formally applied to the Oil and Gas Regulatory Authority (OGRA) for a substantial increase in gas prices, signaling a potential surge of 137.62%.
The utility company's application outlines a proposal to raise the gas price to Rs.2961.98 per MMBtu, effective from July 1, 2023.
The motive behind this request, as stated in the application, is to address the looming shortfall in revenue requirements for the fiscal year 2023-24.
The SNGPL estimates a significant deficit of Rs 181.5160 for the aforesaid financial year.
OGRA has been requested to fix the price of gas at Rs 2961.98 per mmbtu.
Presently, the price of gas is Rs1246. 49 per MMBtu while the SNGPL’s request has sought an increase of Rs1209.14 per MMBtu.
The request explains a detailed breakdown, with Rs1209.14 per MMBtu allocated towards addressing arrears and an additional Rs.56.48 paise per mmbtu requested in response to the rupee's devaluation.
The application is scheduled for a hearing before OGRA on December 11, where stakeholders and regulators will scrutinize the proposal.
Reporter: Awais Kiyani