ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) will hold a public hearing in Lahore on Monday (today) on a petition made by Sui Northern Gas Pipeline Limited (SNGPL) requesting a huge 147% increase in gas pricing for Fiscal Year 2024-25.
If the proposed third rise within a year is approved, it is expected to significantly raise inflation rates and impact the weaker elements of society.
The SNGPL, which serves about 7.22 million customers in North Central Pakistan, primarily in Punjab, Khyber Pakhtunkhwa, and Azad Jammu and Kashmir, is expected to incur a revenue shortfall of Rs189.18 billion.
The proposed gas price increase is set to take effect on July 1, 2024.The company intends to raise the average gas price to Rs4,446.89 per Metric Million British Thermal Unit (mmbtu), an increase of Rs2,646.18 per mmbtu.
The estimated price of Rs4,446.89/mmbtu accounts for last year’s shortages in the natural gas business. Furthermore, the SNGPL has claimed a cost of service for regasified liquefied natural gas (RLNG) of Rs325.08 per mmbtu for the same period.
Following the Lahore hearing, the Ogra will hold another session in Peshawar on March 27, which the regulator believes will provide adequate opportunity for stakeholders, consumers, and the general public to express their concerns.
