Gas tariff hike sought

OGRA conducts public hearing,reserves verdict

LAHORE:

Sui Northern Gas Pipelines Limited (SNGPL) has sought average prescribed price of Rs2,961.98 per million British thermal units (mmBtu) for gas supply with effect from July 1, 2023 to compensate for the increase in cost of gas/ re-gasified liquefied natural gas (RLNG) and other components.

The Oil and Gas Regulatory Authority (Ogra) held a public hearing on an SNGPL’s petition seeking review of its estimated revenue requirement for financial year 2023-24.

The petitioner projected a shortfall of Rs179,160 million in its revenue requirement, including Rs697 million on account of liquefied petroleum gas (LPG) air-mix plants. It requested an increase of Rs506.35 per mmBtu in its average prescribed price effective from July 1, 2023.

Read: Gas tariff hike to fuel inflation

This included the cost of RLNG diverted to domestic consumers in light of a decision of the federal cabinet made on October 30, 2023.

SNGPL also included Rs427,830 million worth of previous years’ shortfall, thereby asking for total average prescribed price of Rs2,961.98 per mmBtu to offset the increase in cost of gas/ RLNG and other components.

In addition, the company estimated the RLNG cost of service at Rs72,160 million, ie Rs293.07 per mmBtu, for financial year 2023-24.

Ogra conducted the hearing to provide an opportunity to consumers to come up with their views. It will announce the final verdict after considering their viewpoints.

Published in The Express Tribune, December 12^th, 2023.

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