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

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12 months ago

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  • 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.

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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1 day ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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