The government is prepared to boost gas prices in Punjab and Khyber Pakhtunkhwa, following a plan already in place for Sindh and Balochistan. Sui Northern Gas Pipeline Limited (SNGPL) has formally sought the Oil and Gas Regulatory Authority (Ogra) for a substantial rise of up to 147%.
The company has formally requested a raise of Rs 2,646.18 per mmbtu and proposed a new average price of Rs 4446.89. The company argues that it has calculated a revenue deficit of Rs189.18 billion.
The Ogra will hold a public hearing over the matter on March 25 in Lahore and on March 27 in Peshawar.
Upon approval, the rise in gasoline prices will take effect on July 1.
In a similar vein, the Sui Southern Company has submitted a formal request to the Oil and Gas Regulatory Authority (Ogra) to increase the price of gas. This proposed increase is projected to impose a financial burden of Rs 79.63 billion on consumers.
Sui Southern has formally requested a price hike of Rs 324.3 per mmbtu. They are requesting the regulator to set a new average price of Rs 1740.80 per mmbtu.
The application has projected a total revenue deficit of Rs79.63 billion for the upcoming fiscal year, with Rs56.69 billion attributed to domestically generated gas and Rs22.93 billion to RLNG.
The Ogra will consider the application from Sui Southern today in Karachi and on March 20 in Quetta.
Following the hearings, a conclusive determination will be transmitted to the federal government. If Islamabad gives its approval, Ogra will release a notification to raise the gas rates.
