Gas Companies Seek Price Hike of Up to 54%

Pakistan’s two gas distribution companies, Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL) have sought to increase gas prices by up to 54 percent to make up for expected revenue shortfalls this fiscal year. The Oil and Gas Regulatory Authority (OGRA) has set dates of November 5 and 8 for public hearings to review these requests. SSGCL is seeking a 53.5 percent increase of Rs. 669.07 per mmBtu, which would raise its prescribed rate from Rs. 1,251.32 to Rs. 1,920.39 per mmBtu. It has also requested Rs. 643 billion to cover un-recouped shortfalls from previous years, equivalent to Rs. 3,073.91 per mmBtu, along with Rs. 46.13 per mmBtu in RLNG cost of services. SNGPL seeks a 3.66 percent increase in tariffs to address a projected shortfall of Rs. 20.582 billion, including Rs. 489 million for its LPG Air Mix Project. The requested hike of Rs. 64.16 per mmBtu would increase SNGPL’s average prescribed price from Rs. 1,746.22 to Rs. 1,810.38 per mmBtu. SNGPL also incorporated the cost of RLNG diverted to indigenous gas consumers. Meanwhile, its estimated RLNG cost of service stands at Rs. 304.27 per mmBtu. In the case of OGRA approval, gas prices will impact all categories of consumers on the utility spectrum.