Gas consumers across Pakistan may face a major financial burden starting July, as both the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company (SSGC) have sought up to Rs2372 per mmbtu hike in prescribed gas tariff.
The SNGPL has sought for a steep increase of Rs708/mmbtu in gas tariffs while the SSGC has asked for Rs2372/mmbtu hike in prescribed gas tariff for the next fiscal year.
According to available documents, both the companies have filed petitions with the Oil and Gas Regulatory Authority (OGRA) for the determination of new gas prices for the fiscal year 2025-26.
The SNGPL has sought OGRA's approval to increase the average prescribed price of natural gas to Rs2,485.72 per mmbtu for FY 2025-26 high from the existing Rs1772/mmbtu.
The proposed price hike is primarily driven by a shortfall in the revenue requirement, amounting to Rs207,435 million, and a significant increase in the cost of gas, including both indigenous and Regasified Liquefied Natural Gas (RLNG).
The petition also highlights an increase in the cost of indigenous gas, projected at Rs231,604 million, as well as the cost of RLNG diversion, estimated at Rs299,936 million.
Additionally, operating costs have risen significantly, with the SNGPL citing Rs37,007 million for HR and other expenses. Financing costs related to late payments also contribute to the request for the price increase, with the surcharge totaling Rs97,150 million.
Moreover, the SNGPL has proposed substantial capital expenditures for expanding the gas network, including the laying of pipelines and further measures to control unaccounted for gas (UFG).
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