Already burdened by inflation, the public is bracing for another setback as Pakistan’s two major gas utilities — Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company Ltd (SSGCL) — have requested up to a 28 percent increase in gas tariffs to meet revenue requirements for the current fiscal year.
Under the law, gas prices are revised twice a year based on determinations by the Oil and Gas Regulatory Authority (Ogra), which will hold a public hearing on November 7 to review SNGPL’s petition for a 10.7 percent (Rs189 per mmBtu) hike.
SNGPL has proposed raising the prescribed price from Rs1,766.50 to Rs1,955.50 per mmBtu, citing a Rs53 billion shortfall and additional costs for LPG air-mix subsidies and RLNG diversion.
Combined, the utilities estimate a total increase of Rs506 per mmBtu, translating to a 28.7 percent rise to Rs2,272 per mmBtu.
The government, under commitments to the IMF, must issue timely biannual tariff notifications to prevent further growth in the energy sector’s Rs3 trillion circular debt.
