Gas Prices Likely to Rise in Pakistan: Sui Companies Demand Massive Increase from OGRA

Sui gas distribution companies have formally approached the Oil and Gas Regulatory Authority (OGRA) seeking a significant increase in gas prices from July 1, citing heavy financial losses and mounting revenue shortfalls.

The companies have sought a rise in the average gas price to Rs 5,306 per MMBTU and permission to recover huge accumulating losses in past and future years, according to the official submissions.

SSGC demands over Rs 1.2 trillion revenue

The Sui Southern Gas Company (SSGC) has presented a total revenue requirement of Rs 1,279 billion, which includes:

• Rs 411 billion for the upcoming financial year
• Rs 545 billion to cover past revenue shortfalls
• Rs 42 billion in LNG service charges

SSGC has also requested an average gas price increase to Rs 5,306 per MMBTU, citing financial pressure and system losses.

SNGPL also seeks tariff adjustment

Meanwhile, the Sui Northern Gas Pipelines Limited (SNGPL) has also submitted its case to OGRA. The company estimates:

• Rs 8.73 billion shortfall for the next financial year
• Rs 585 billion accumulated deficit from previous years
• Rs 67.67 billion in LNG service costs

SNGPL has further requested recovery of Rs 376.33 per MMBTU in LNG service charges.

OGRA hearings scheduled

The petition of SNGPL will be heard by OGRA on April 21, and that of SSGC will be heard on April 22. The authority will resolve to either approve or disapprove the proposed tariff adjustments based on the financial justifications and social impact.

The proposed increases, if approved, could significantly impact gas prices for domestic and industrial consumers across Pakistan.

Syeda Qandeel Zehra

Syeda Qandeel Zehra, an MBA holder with four years of content writing experience, is a versatile writer adept in news, blogs, and articles. Specializing in SEO content, she combines business insight with engaging storytelling. Keen on staying updated with industry trends, Syeda crafts compelling and high-ranking content that resonates with her audience.