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OGRA to Hold Public Hearing on Sui Southern’s Petition for Massive Increase in Gas Prices

The Oil and Gas Regulatory Authority (OGRA) has decided to hold a public hearing on a petition lodged by the Sui Southern Gas Company (SSGC), seeking an increase of Rs. 58.42 per MMBTU in its prescribed prices effective from 1 July 2021 to compensate for the increase in the cost of gas.

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According to details, OGRA will hold the public hearing on SSGC’s petition on 6 December 2021, Monday, at 10.30 am in Pearl Continental Hotel in Karachi.

SSGC had filed the petition on 12 October 2021 in OGRA under section 8(2) of the OGRA Ordinance 2002 read with rule 4(3) of Natural Gas Tariff Rules 2002 to review its estimated revenue requirement and prescribed prices for FY 2021-22.

Here is a breakdown of the projected prescribed prices for FY 2021-22 as claimed by SSGC.

Particulars Price (Rs./MMBTU)
Units sold (BBTU) 314,911
Cost of gas sold 774.54
Adjustment for UFG above benchmark 39.12
Transmission and distribution costs including others 70.51
Depreciation 23.23
Return on net average operating fixed assets 22.32
Other operating income 16.18
Subsidy for LPG air-mix project 3
Average prescribed price 838.30
Current average prescribed price 779.88
Increase requested for average prescribed price 58.42

SSGC has also estimated the cost of service for RLNG at Rs. 30.48 per MMBTU for FY 2021-22.

OGRA has invited all interested and affected persons including gas consumers and the general public to provide comments, suggestions, and intervention requests during the public hearing.

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