Islamabad, Oct 30: In order to compensate for anticipated income shortages this fiscal year, Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL), Pakistan’s two gas distribution corporations, have attempted to raise gas prices by as much as 54%.
To assess these requests, the Oil and Gas Regulatory Authority (OGRA) has scheduled public hearings for November 5 and 8.
SSGCL wants to raise its prescribed tariff from Rs. 1,251.32 to Rs. 1,920.39 per mmBtu, or a 53.5 percent increase of Rs. 669.07 per mmBtu. Along with Rs. 46.13 per mmBtu in RLNG cost of services, it has also asked for Rs. 643 billion to address unrecouped deficiencies from prior years, or Rs. 3,073.91 per mmBtu.
To cover a projected shortfall of Rs. 20.582 billion, including Rs. 489 million for its LPG Air Mix Project, SNGPL is requesting a 3.66 percent rise in rates. The average prescribed price for SNGPL would rise from Rs. 1,746.22 to Rs. 1,810.38 per mmBtu with the proposed boost of Rs. 64.16 per mmBtu.
The expense of RLNG redirected to domestic gas users was also factored in by SNGPL. At the same time, the anticipated RLNG service cost is Rs. 304.27 per mmBtu.
All utility customer categories will be impacted by gas pricing in the event of OGRA approval.
