Islamabad (HRNW)- Sui Gas Companies have formally approached the Oil and Gas Regulatory Authority for a major increase in gas prices from July 1. The gas companies have requested to increase the average gas price to Rs 5,306 per MMBTU.
According to sources, Sui Gas Companies have claimed a total shortfall of Rs 1,650 billion based on the losses of the next and previous financial years, for which a significant increase in prices has been shown to be necessary for recovery.
According to the request, Sui Southern Gas Company has demanded Rs 956 billion in revenue, including Rs 411 billion for the next financial year and Rs 545 billion for the previous shortfall. Sui Southern’s total revenue requirements have reached Rs 1,279 billion.
Sui Southern Gas Company has also demanded another Rs 42 billion in LNG service costs. The petition states that due to rising costs, the price of imported LNG and past losses, an increase in the average price of gas to Rs 5,306 per MMBTU has become inevitable.
According to OGRA sources, public hearings will be held on the request of gas companies, after which a final decision will be taken after a detailed review. Experts say that if this increase is approved, there is a risk of further increase in the financial burden on domestic and industrial consumers.
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