LAHORE:
The SUI Northern Gasipepelines Limited (SNGPL) demanded on Friday an increase in gas prices and asked the Petroleum and Gas Regulatory Authority (OGRA) to raise the prohibition of new emission connections to national consumers.
They held the public hearing on these demands at the SNGPL headquarters, with President Ogra Masroor Khan in La Silla. During the hearing, the SNGPL requested an increase of RS735 per million of the British thermal unit (MMBTU).
The public services company also said that regasified domestic connections of liquefied natural gas (RLNG) should be allowed immediately because a prohibition of them was reducing their income. He argued that the price of gas should increase, so expenses in expansion projects were met.
Representatives of commercial, industrial and national consumers firmly opposed the increase in prices. They argued that people were already loaded, and added that many commercial consumers had disconnected their gas connections. Hotels and textile sectors also opposed the tariff walk.
The SNGPL, although he explained the reasons for the tariff walk, said that the average fixed price for fiscal year 2025-26 was established at RS2,485.72 per MMBTU, and added that 51% of the price increase was destined to provide RLNG costly gas to the system’s gas consumers.
He added that another 39% of the price increase was due to the surcharge for late payment (LPS) applied to the fees of the gas sector, that is, circular debt. The SNGPL declared that the participation of operational expenses in the company’s total income requirements was only 4-6%.
