Sui Northern Gas Pipelines Limited (SNGPL) has submitted a request to the Oil and Gas Regulatory Authority (Ogra) for a substantial increase in gas prices, as reported by Geo News on Monday.
The company has proposed a 147% hike in gas prices, aiming to increase the average gas price to Rs4,446.89 per metric million British thermal unit (mmbtu), with an increase of Rs2,646.18 per mmbtu. This move is expected to add more pressure on the already inflation-burdened public.
SNGPL, serving over 7.22 million consumers in North Central Pakistan, primarily in Punjab, Khyber Pakhtunkhwa, and Azad Jammu & Kashmir, is facing a projected revenue shortfall of Rs189.18 billion. The proposed gas price increase is slated to take effect from July 1.
Ogra will hold hearings on SNGPL’s plea on March 25 in Lahore and March 27 in Peshawar, alongside similar hearings regarding SSGC’s request for a gas price hike of Rs274.40 per mmbtu.
Meanwhile, Ogra conducted a public hearing on SSGC’s petition for a gas price increase to address the company’s revenue shortfall for the financial year 2024-25. SSGC’s petition includes projections for the average prescribed gas price and RLNG (Re-gasified Liquefied Natural Gas) cost of service for the fiscal year, aiming to cover gas costs, operating expenses, and return on assets.
Additionally, SSGC’s petition addresses issues such as gas supply volume projections from local gas fields, steps taken to meet the country’s increasing energy demand, and investments in infrastructure to connect new areas.
The gas price hike requests from both SNGPL and SSGC are part of broader discussions and regulatory evaluations regarding the sustainability and financial viability of the gas sector in Pakistan.
