Business

SSGC seeks 15.38% increase in gas prices for current fiscal year

Published

1 year ago

Farwa

SSGC seeks hike to offset rising costs of gas, other components.
Petition includes Rs13.45 per MMBtu for LPG air-mix projects.
Ogra invites comments from all interested, affected parties.

ISLAMABAD: The Sui Southern Gas Company (SSGC) once again sought a 15.38% increase in gas prices for the ongoing fiscal year in a bid to offset the rising costs of gas and other components, The News reported Wednesday.

In its petition filed with the Oil and Gas Regulatory Authority (Ogra), SSGC has urged the revision of the rate from the existing Rs1,470.21 per MMBtu to Rs1,696.39 per MMBtu — an increase of Rs226.18 per MMBtu — from July 1 of the current financial year.

The company’s petition to Ogra outlines an estimated revenue requirement of Rs47.773 billion for FY24.

The average prescribed price is predominantly composed of the cost of gas, representing over 85% of the determined price.

The Karachi-based gas utility highlights that the cost of gas is linked to the international price of crude oil/fuel oil, as per agreements between the federal government and gas producers. Additionally, SSGC has calculated the cost of RLNG’s service at Rs48.8 per MMBtu for FY2023-24.

Significantly, the company’s petition includes Rs13.45 per MMBtu for the LPG air-mix projects and Rs95.40 per MMBtu to be recovered from consumers to counteract revenue shortfalls from Balochistan province.

Simultaneously, SSGC has filed another petition for the revision of the security deposit of domestic (system gas & RLNG) consumers. In this petition, the company proposes revising the gas supply deposit (GSD) based on the highest three months of consumption during the year. The recovery of the gas supply deposit shortfall from domestic consumers will occur over six months in equal instalments.

The petition notes that currently, only 1.697 million out of 3.186 million domestic consumers, or 53%, are secured with their gas supply deposit. Meanwhile, 1.426 million domestic consumers are unsecured, with a GSD shortfall of Rs9.579 billion against the required GSD of Rs15.019 billion.

In response to these petitions, Ogra has invited comments from all interested and affected parties, including gas consumers and the general public. A public hearing on the petition is scheduled on December 18, 2023, in Karachi, during which the regulatory authority will determine the gas prices.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

1 day ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.