The Sui Southern Gas Company (SSGC) submitted a request to the Oil and Gas Regulatory Authority (Ogra) seeking a substantial increase in gas prices, effective from July 1, 2024.
According to the proposal, SSGC is urging Ogra to raise gas prices by Rs324 per million British thermal units (mmbtu), aiming to set a new average price of Rs. 1740.80 per mmbtu. If approved, this hike would impose a staggering burden of Rs79.63 billion on gas consumers across the country.
Highlighting the financial rationale behind the request, SSGC has pointed out a projected revenue shortfall of Rs. 79.63 billion for the upcoming fiscal year.
Of this deficit, Rs56.69 billion is attributed to local gas sales, while Rs22 billion is linked to Re-gasified Liquefied Natural Gas (RLNG) transactions. Additionally, a renovation shortfall of Rs935 million has been estimated.
Ogra is scheduled to conduct hearings on SSGC's petition, with sessions slated for tomorrow in Karachi and March 20 in Quetta. This follows a series of previous increases in gas prices throughout the current fiscal year.
Notably, gas tariffs have already been raised twice in recent months. Beginning from November 1, 2023, consumers witnessed a staggering 200% surge in gas prices, followed by a 67% increase for domestic users from February 1, 2024. Cumulatively, these hikes have placed an additional burden of approximately Rs. 643 billion on gas consumers nationwide.
