ISLAMABAD – Sui Northern Gas Pipelines Limited (SNGPL) has requested a substantial hike in gas prices to meet its estimated revenue requirements for the current fiscal year.
The largest gas company serving millions of consumers in the North Central region has proposed fixing the price of natural gas at Rs4446.89/MMBTU, indicating a staggering surge of 147%.
SNGPL has joined Sui Southern in seeking a rise in consumer gas prices. If approved by the Oil and Gas Regulatory Authority (OGRA), this increase would impose an additional Rs79 billion on consumers over the next year.
SNGPL’s petition for a price revision is scheduled for March 25. In its request, the company has proposed a price of Rs4446.89/MMBTU.
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Sui Southern Gas Company Limited has also requested a price increase, with hearings scheduled for Karachi on March 18 and Quetta on March 20. The gas company has proposed a price of Rs1740.80/MMBTU for the next year.
Both gas companies are facing significant revenue shortfalls, with SNGPL projecting losses of Rs189 billion and SSGC projecting losses of Rs46 billion if revenues are not increased.
Natural gas prices have already been raised twice in the current fiscal year, with nearly a 200% increase in November and another 67% increase in February.
