After SSGC, SNGPL is also seeking huge hike in gas price

• SNGPL has estimated a revenue shortfall of Rs 189.18 billion.
• It calls for the enhanced price of natural gas to be implemented from July 1.
• Ogra will hear SNGPL’s appeal on March 25 in Lahore.

LAHORE: After Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGPL) has also asked the Oil and Gas Regulatory Authority (Ogra) to increase the price of natural gas, Geo News reported on Monday.

The company sought a 147% gas price hike from the regulator that would further burden the inflation-weary masses.

SNGPL is the largest integrated natural gas company serving more than 7.22 million consumers in North Central Pakistan through an extensive network in Punjab, Khyber Pakhtunkhwa and Azad Jammu & Kashmir

According to the TV report, the utility has asked for an increase of Rs 2,646.18 per million metric thermal unit (mmbtu) in the price of natural gas and asked to fix the new average price of natural gas at Rs 4,446.89.

Facing an estimated revenue shortfall of Rs 189.18 billion, it has asked to implement the enhanced gas price from July 1.

The oil sector regulator will hear SNGPL’s appeal on March 25 in Lahore and on March 27 in Peshawar.

It may be noted that SSGC has also submitted a request to the regulator for further hike in gas price, asking for an increase of Rs 274.40 per mmbtu.

On March 17, a month after caretakers saddled the masses with a gas price hike on the demand of the International Monetary Fund (IMF), the SSGC asked Ogra to further hike gas prices from July 2024.

The caretaker government had approved a 67% hike in gas tariff with effect from February 1. The tariff was increased to meet the IMF’s deadline to raise natural gas prices under structural benchmarks by February 15, 2024.

Citing an estimated revenue shortfall of Rs 79.63 billion, SSGC had asked Ogra to fix the average price of a mmbtu of natural gas at Rs 1740.80.

A public hearing on the petition is scheduled for March 18 in Karachi, during which the regulator will set gas prices. Ogra will also hear the petition in Quetta on March 20.