ISLAMABAD: Sui companies have asked the Oil and Gas Regulatory Authority (OGRA) to increase gas prices by up to Rs730 per Million British Thermal Unit (MMBTU) to meet their revenue shortfall of Financial Year (FY) 2023-24.
Inflation-hit masses are expected to prepare for another heavy jolt in the form of a massive gas price hike as Sui Northern Gas Pipelines Limited (SNGPL) seeks a price increase of Rs 730.39/MMBTU while Sui Southern Gas Company Limited (SSGCL) wants Rs 391.69/MMBTU with the start of upcoming fiscal year 2023-24.
SNGPL and SSGCL, in separate petitions, have sought this colossal price hike for determination of their Estimated Revenue Requirement/prescribed prices for the next financial year.
OGRA will conduct one public hearing on the petition of SNGPL on March 20, 2023, in Lahore, and then two one for SSGCL; the first one will be held on March 13, 2023, in Karachi and then on March 17, 2023, in Quetta.
The authority issued a notification to say it has invited all interested/affected persons including gas consumers and the general public to furnish their comments, suggestions, and intervention requests.
According to sources, if OGRA approves the requested gas price hike from July 1, 2023, then Rs 356 billion will be collected from consumers of the two gas utilities. This is while the government has already jacked up gas prices by 112% from January 1, 2023.
As per the agreement with the International Monetary Fund (IMF), the government is bound to increase gas prices and pass on the hike to the gas consumers instead of offering them subsidies, they added.