ISLAMABAD – Gas tariffs in Pakistan are expected to increase as Sui Southern Gas Company and Sui Northern Gas Pipelines Limited have formally approached Oil and Gas Regulatory Authority with requests for revised pricing, proposed to take effect from July 1.
According to details, SSGC has sought a significant hike, requesting an average increase of Rs5,306 per MMBTU. The company has projected a requirement of Rs956 billion to address financial gaps, along with Rs411 billion needed for the upcoming fiscal year. This includes accumulated deficits amounting to Rs545 billion from previous periods.
In addition, SSGC has asked for Rs42 billion to cover LNG-related service costs. If approved, the revised average gas price proposed by the company would reach Rs6,855 per MMBTU, reflecting a substantial rise aimed at stabilizing its financial position.
Meanwhile, SNGPL has also submitted its application to OGRA, proposing an average gas price of Rs1,784.50 per MMBTU. The company has estimated a revenue shortfall of Rs8.73 billion for the next fiscal year, while also seeking to recover around Rs585 billion in past deficits.
Furthermore, SNGPL has requested Rs67.67 billion to account for LNG expenses, which includes a charge of Rs376.33 per MMBTU specifically for LNG services. These requests highlight the increasing burden of energy costs and the need for adjustments to maintain operations.
OGRA is set to conduct public hearings on April 21 for SNGPL and April 22 for SSGC. Following these sessions, the regulatory authority will review the proposals and announce a final decision regarding the revised gas tariffs.
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