After SSGC, SNGPL also seeks massive hike in gas price

0
137
SNGPL

LAHORE: After Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGPL) has also requested the Oil and Gas Regulatory Authority (Ogra) to jack up the price of gas, Geo News reported on Monday.

The company has sought 147% hike in gas prices from the regulator that would put more burden on the inflation-weary masses. 

The SNGPL is the largest integrated gas company serving more than 7.22 million consumers in North Central Pakistan through an extensive network in Punjab, Khyber Pakhtunkhwa and Azad Jammu & Kashmir

According to the TV report, the utility company has requested an increase of Rs2,646.18 per metric million British thermal unit (mmbtu) in gas price and asked that the new average gas price be fixed at Rs4,446.89.

Facing an estimated revenue shortfall of Rs189.18 billion, it has requested to implement the enhanced gas price from July 1.

The petroleum sector regulator will hear the SNGPL plea on March 25 in Lahore and on March 27 in Peshawar.

It may be noted that the SSGC has also submitted a request to the regulator for further hike in gas price, seeking an increase of Rs274.40 per mmbtu.

On March 17, a month after the caretakers burdened the masses with gas price hike on the International Monetary Fund’s (IMF) demand, the SSGC had requested the Ogra to further increase gas prices from July 2024.

The caretaker government had approved a 67% increase in the natural gas tariff with effect from February 1. The tariff was hiked to meet the deadline of the IMF for hiking the gas prices under structural benchmark criteria till February 15, 2024.

Citing an estimated Rs79.63 billion revenue shortfall, the SSGC had urged the Ogra to set average price of one mmbtu gas at Rs1740.80.

A public hearing on the petition is scheduled on March 18 in Karachi, during which the regulatory authority will determine the gas prices. The Ogra will also hear the petition in Quetta on March 20.