Pakistan is likely to face a significant increase in gas prices as Sui Southern Gas Company and Sui Northern Gas Pipelines Limited have submitted formal requests for revised tariffs.
Both companies have approached Oil and Gas Regulatory Authority seeking approval for new gas prices, proposed to take effect from July 1.
SSGC has requested a major increase, proposing an average hike of Rs5,306 per MMBTU. The company aims to recover a total of Rs956 billion to manage financial shortfalls.
This includes Rs411 billion for the upcoming fiscal year and an additional Rs545 billion to cover previous deficits. SSGC has also asked for Rs42 billion to manage LNG service-related costs.
Under its proposal, the revised average gas price would rise sharply to Rs6,855 per MMBTU, reflecting the growing financial burden faced by the company.
Meanwhile, SNGPL has proposed setting its average gas price at Rs1,784.50 per MMBTU. The company reported a projected shortfall of Rs8.73 billion for the next fiscal year.
In addition, SNGPL is seeking recovery of Rs585 billion from previous financial gaps, highlighting the ongoing strain in the energy sector.
The company has also requested Rs67.67 billion for LNG costs, including Rs376.33 per MMBTU specifically allocated for LNG service charges.
OGRA is scheduled to conduct public hearings on April 21 for SNGPL and April 22 for SSGC to review these proposals in detail.
Following these hearings, the regulatory authority will announce a final decision regarding the revised gas tariffs, which could impact millions of consumers across Pakistan.
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