Sui companies seek price hike of up to Rs730/mmbtu

If approved, Rs356 billion will be collected from consumers from July 1, 2023

ISLAMABAD:

The Sui companies have asked the Oil and Gas Regulatory Authority (Ogra) to increase gas prices by up to Rs730 per million British Thermal Unit (mmbtu) to meet their revenue shortfall for financial year (FY) 2023-24.

As a result, inflation-hit consumers are now expected to prepare for another heavy jolt in the form of a massive gas price hike as Sui Northern Gas Pipelines Limited (SNGPL) has sought a price increase of Rs730.39/ mmbtu, while Sui Southern Gas Company Limited (SSGCL) has asked for Rs391.69/mmbtu rise with the beginning of the upcoming fiscal year 2023-24. According to sources, if Ogra approves the requested gas price hike effective from July 1, 2023, then Rs356 billion will be collected from consumers of both utilities.

As per the agreement with the International Monetary Fund (IMF), the government has committed to increasing the price of gas and passing on the burden to consumers instead of offering them subsidies, they added.

On January 1, 2023, the government had raised the price of gas by 112%.

In separate petitions, SNGPL and SSGCL have sought this colossal price hike to determine their Estimated Revenue Requirement/prescribed prices for the next financial year.

Ogra will conduct a public hearing on SNGPL’s petition on March 20, 2023, in Lahore, and then it will hold two more hearings on SSGCL’s petition; the first one will be held on March 13, 2023, in Karachi and the other one on March 17, 2023, in Quetta.

The regulatory authority stated in a notification on Thursday that it has invited all interested/ affected persons, including gas consumers and the general public to present their comments, suggestions and intervention requests.