OGRA hearing for hike in Sindh, Balochistan gas tariff tomorrow

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ISLAMABAD, NOV 20 (DNA) — The Oil and Gas Regulatory Authority (OGRA) will hear the SSGC plea for the hike in consumer tariff for Sindh and Balochistan tomorrow. The Sui Southern Gas Company has requested to the regulator for 96.36 percent hike in the gas tariff.

The gas utility has asked for an increase in the gas tariff by 667.44 rupees per MMBTU. The gas company has requested to the OGRA to fix the gas tariff at 1360 rupees per MMBTU. Presently the gas tariff of the Sui Southern has been fixed at 692.63 rupees per MMBTU.

The SSGC has applied to the OGRA to meet its revenue requirements for the current fiscal year. The OGRA after its decision will forward it to the federal government for approval. The federal government would have final say in deciding about hike in the gas tariff for the two provinces.

The International Monetary Fund (IMF) had demanded in September to increase the gas tariff in the country ahead of winter. Sources said that the government had asked the lender to give some time to make necessary amends and raise the tariff to curtail the circular debt of the country.

An estimate said that the gas tariff could be increased from 45% to 53%. However, the government has ensured the money lender that small consumers would be facilitated and not overcharged. =DNA