Islamabad:
Gas consumers throughout Pakistan can face an important financial burden from July, since both the Sui Northern Gas Tpelines Limited (SNGPL) and the Sui Southern Gas Company (SSGC) have sought until RS2372 by MMBTU walk in the prescribed gas rate.
The SNGPL has sought a sharp increase of RS708/MMBTU in gas rates, while the SSGC has requested the increase of RS2372/MMBTU in the gas rate prescribed for the next fiscal year.
According to the available documents, both companies have submitted requests before the Petroleum and Gas Regulatory Authority (OGRA) for the determination of new gas prices for fiscal year 2025-26.
The SNGPL has sought the approval of OGRA to increase the prescribed average price of natural gas to RS2,485.72 per MMBTU for fiscal year 2025-26 high from the RS1772/MMBTU existing.
The proposed price increase is mainly driven by a deficit in the income requirement, which amounts to RS207,435 million, and a significant increase in the cost of gas, including indigenous and regular liquefied natural gas (RLNG).
The petition also highlights an increase in the cost of indigenous gas, projected at RS231,604 million, as well as the cost of RLNG deviation, estimated at RS299,936 million.
In addition, operating costs have increased significantly, with the SNGPL citing RS37.007 million for human resources and other expenses. Financing costs related to backward payments also contribute to the application of the price increase, with the surcharge for a total of RS97,150 million.
In addition, the SNGPL has proposed substantial capital expenses to expand the gas network, including the placement of pipes and new measures to control gas not counted by gas (UFG).
