SNGPL, SSGC asked OGRA for a major rise in gas price

The SNGPL requested an increase of Rs857.40 per mmbtu while SSGC has requested a tariff increase of Rs109.78 per metric million mmbtu.

ISLAMABAD: The Sui Southern Gas Company (SSGC) and Sui Northern Gas Private Limited (SNGPL) have asked the Oil and Gas Regulatory Authority to raise the gas tariff.

SSGC has requested a tariff increase of Rs109.78 per metric million British thermal unit (mmbtu), while SNGPL has requested an increase of Rs857.40 per mmbtu. They want the rise in petrol prices to take effect on July 1, 2021.

In its petition, SNGPL demanded an average revenue obligation (ERR) for the fiscal year 2021-22. In the regular sector, it has expected an expansion of Rs1415.91 per mmbtu, which includes the previous year’s deficit of Rs66.75 per mmbtu.

read more: Pakistan attracts new LNG crisis

The price of RLNG redirected to the domestic sector has been stated as part of the gas cost in the petition at Rs27.940 billion.

The SNGPL has demanded a 35.38 percent increase in profits for the financial year 2021-22, from Rs209.113 billion to Rs283.099 billion. SNGPL also stated in its petition that it is facing a Rs254.108 billion shortfall from the previous year.

SSGC, on the other hand, has demanded a Rs109.78 per unit increase in the prescribed price of gas for an expected sales demand for the financial year 2021-22, owing to an increase in operational costs to Rs25.595 billion from Rs19.273 billion and a return on assets of Rs7.704 billion.

The cost of operation for RLNG is calculated to be Rs16.715 billion, or Rs43.38 per mmbtu in the RLNG head. The gas sector is reportedly facing a Rs34.994 billion deficit.

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