ISLAMABAD – Sui Northern Gas Pipelines Limited (SNGPL) has sought a massive increase in gas price for estimated revenue requirement for current fiscal year.
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The largest gas company serving million of consumers in North Central region has asked for the price of sui gas to be fixed at Rs4446.89/MMBTU, the amount that speaks of 147pc surge.
SNGPL has joined Sui Southern to raise gas prices for consumers. If approved by the Oil and Gas Regulatory Authority (OGRA), this increase would place an additional burden of Rs79 billion on consumers over the next year.
SNGPL’s petition for a price revision has scheduled for March 25. The company, in its request, proposed a price of Rs4446.89/MMBTU.
Sui Southern Gas Company Limited also requested a price increase, with hearings set for Karachi on March 18 and Quetta on March 20. The gas company proposed a price of Rs1740.80/MMBTU for the next year.
Both gas companies are facing significant revenue shortfalls, with SNGPL projecting losses of Rs189 billion and SSGC projecting losses of Rs46 billion if revenues are not increased.
Natural gas prices have already been raised twice in current fiscal year, with nearly 200pc increase in November and another 67pc increase in February this year.
