Everyone needs to prepare for another hike in the gas tariff as the two main gas utilities have requested the Oil and Gas Regulatory Authority (OGRA) for an increase of up to Rs. 730.39/MMBTU in order to meet their revenue shortfall for the financial year (FY) 2023-24.
In separate petitions submitted to the Oil and Gas Regulatory Authority (OGRA), Sui Northern Gas Pipelines Limited (SNGPL) has asked for an increase of Rs. 730.39/MMBTU in the gas tariff, while Sui Southern Gas Company (SSGC) has sough an increase of Rs. 391.69/MMBTU in the gas price from July 1, 2023.
SSGC has also claimed Rs. 32.62 per MMBTU in RLNG business with effect from July 1, 2023 and an increase of Rs. 391.69 per MMBTU in indigenous gas business. in the SSGC tariff for the financial year 2023-24, while SNGPL has also claimed RLNG cost of service at Rs. 222.36/MMBTU for FY2023-24.
The petitioner has also demanded an additional amount of Rs. 710.82 per MMBTU under the RLNG cost of service on account of differential impact of RLNG diversion to domestic sector.
It is pertinent to mention that the Federal Government has already increased the consumer gas tariff by 124% for the current fiscal year in order to meet the Rs. 310 billion revenue shortfall of the two main gas companies.
Additionally, the Government needs to pass on the impact to various consumer categories based on OGRA-approved prices. Furthermore, the law requires that consumer-end gas prices be revised twice a year.
OGRA will conduct hearing on the petition of SNGPL on March 20, 2023, in Lahore, while two hearings will be conducted for SSGC petition on March 13 and March 17, 2023 in Karachi and Quetta, respectively.
Meanwhile, the Economic Coordination Committee (ECC) has approved an increase in the power tariff for consumers across Pakistan, including K-Electric customers in order to meet the demand of the International Monetary Fund (IMF).
Read more: ECC Okays Increase in Power Tariff to Meet IMF Demands.
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