SSGC Seeks 15% Increase in Price of Gas

The Sui Southern Gas Company Limited (SSGC) has filed a petition with Oil & Gas Regulatory Authority (OGRA) for an increase in the price of gas by Rs. 226.18 per MMBTU. According to a public hearing notice issued by OGRA, SSGC filed a petition on October 9, 2023, which was subsequently amended on December, 06, 2023, before the Authority for Review of its Estimated Revenue Requirement/ Prescribed Prices for FY24. The petitioner has informed that it has included UFG disallowance in Balochistan region as revenue shortfall as part of revenue requirement in the light of decision of federal cabinet dated October 30, 2023. SSGC has projected a shortfall in revenue requirement for FY24 at Rs. 47,773 million, seeking increase in average prescribed price by Rs. 226.18 per MMBTU in its prescribed prices effective from July 01, 2023, to compensate for increase in cost of gas and other components of the petition. The cost of gas is linked to the international price of crude oil/fuel oil in accordance with the agreements between the federal government and the gas producers. The current average sale price is Rs. 1,470.21 per MMBTU and the company wants the average prescribed price to be set at Rs. 1,696.39 per MMBTU, reflecting an increase of 15.38 percent. OGRA will conduct the public hearing in this regard on December 18. Earlier, Sui Northern Gas Pipelines Limited (SNGPL) had filed a petition before OGRA seeking a 137 percent increase in gas charges for consumers. The Authority conducted a public hearing on the matter recently with its decision expected to be announced soon.