ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Monday reserved its decision on a gas price hike for the gas consumers of Sui Southern Gas Company Limited (SSGCL).
According to OGRA spokesman Imran Ghaznavi, OGRA has reserved its decision on SSGCL’s plea regarding a price hike by Rs58.42/MMBTU gas price hike, which shall be passed in due course of time.
He said that OGRA held a public hearing under the chairmanship of Masroor Khan and two members to review the gas utility’s Estimated Revenue Requirement (ERR) for FY22, providing ample opportunity to all the stakeholders and reserved their decision which shall be passed in due course of time.
The authority said that SSGCL projected a shortfall in revenue requirement of Rs18, 399 million for FY22 and sought an increase in its average prescribed price by Rs58.42 per MMBTU effective July 1 and the petitioner has also estimated Re-gasified Liquefied Natural Gas (LNG) cost of services at Rs30.48 per MMBTU.
The authority admitted the petition and issued notices on November 23 to all stakeholders and held a public hearing at Karachi on December 6 to hear and provide an opportunity to all consumers and stakeholders to participate and provide their input on the petition.
Earlier, OGRA on December 1 had conducted a public hearing in Lahore to consider Rs269 per unit increase in the prescribed price of SNGPL for FY22.
SNGPL requested a review of the estimated revenue requirement of the public gas utility for 2021-22 and called for increasing the prescribed gas price by Rs269 per MMBTU, adding that if the shortfall of prior years was included, the requirement would increase to Rs907 per unit.
Reportedly, SNGPL Managing Director Ali Hamdani while speaking during the course of the hearing requested the authority to consider the petition positively and allow a just and equitable revenue requirement, especially in areas where investment had already been made.