SSGC also seeks gas price hike

Requests OGRA to raise price of one MMBTU gas by over Rs226

ISLAMABAD:

 

After the Sui Northern Gas Pipelines (SNGPL), the Sui Southern Gas Company (SSGC) has also requested the fuel regulator—the Oil and Gas Regulatory Authority (OGRA)—to increase gas prices for the consumers in Sindh and Balochistan provinces.

The SSGC has requested an increase in the price of gas by Rs226.18 per Metric Million British Thermal Unit (mmbtu).

The current average price of one mmbtu gas stands at Rs1470.21. The company has applied to set the new average gas price at Rs1696.39 per mmbtu.

The request states that in the current fiscal year, the SSGC estimates a revenue shortfall of Rs47.77 billion. In Balochistan, the estimated revenue shortfall is Rs95.40 per mmbtu.

A revenue shortfall refers to a situation where the actual revenue earned or expected falls short of a projected or expected revenue target. 

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In the context of a company or organization, it means that the income or earnings generated are less than what was anticipated or budgeted for within a specific period. A shortfall can affect budgets, investment plans, and overall financial stability.

The SSGC has requested the OGRA to increase Rs150.67 per mmbtu on account of transmission and distribution cost adjustment with a requested margin of Rs40.96 per mmbtu due to differences in currency valuation. ORGA will hold a hearing on the SSGC’s request in Karachi on December 18.

Last week, on December 6, the SNGPL sought an increase in gas price by Rs506.35 per mmbtu to Rs1,762.83 from Rs1,246.49 per mmbtu for estimated revenue requirement for fiscal year 2023-24.

The SNGPL is responsible for supply of gas to Punjab and Khyber Pakhtunkhwa province while the SSGC supplies gas to the southern provinces of SIndh and Balochistan.