Pakistan’s two gas distribution companies, Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL), have requested a gas price increase of up to 54 percent to address anticipated revenue shortfalls for the current fiscal year.
The Oil and Gas Regulatory Authority (OGRA) has scheduled public hearings for November 5 and 8 to evaluate these proposals.
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SSGCL is seeking a substantial increase of 53.5 percent, which translates to Rs. 669.07 per mmBtu, raising its prescribed rate from Rs. 1,251.32 to Rs. 1,920.39 per mmBtu. Additionally, the company has requested Rs. 643 billion to cover unrecouped shortfalls from previous years, amounting to Rs. 3,073.91 per mmBtu, along with Rs. 46.13 per mmBtu in RLNG (Regasified Liquefied Natural Gas) service costs.
On the other hand, SNGPL is proposing a 3.66 percent tariff increase to address a projected shortfall of Rs. 20.582 billion, which includes Rs. 489 million allocated for its LPG Air Mix Project. The requested hike of Rs. 64.16 per mmBtu would raise SNGPL’s average prescribed price from Rs. 1,746.22 to Rs. 1,810.38 per mmBtu. SNGPL’s calculations also account for the cost of RLNG redirected to indigenous gas consumers, with an estimated RLNG service cost of Rs. 304.27 per mmBtu.
If OGRA approves these increases, the new gas prices will affect all categories of consumers across the utility spectrum.
