The Oil and Gas Regulatory Authority (OGRA) will conduct a public hearing in Lahore today on Sui Northern Gas Pipeline Limited’s request to increase gas prices by a massive 147 percent for fiscal year 2024-25.
This will be the third time this year that gas rates have increased as a result of this hearing. Such a decision will put more pressure on the less affluent sectors of society. The proposed hike in gas prices is scheduled to come into effect from July 1, 2024, reported a national daily.
SNGPL is facing a revenue shortfall of over Rs. 189 billion. For this reason, it aims to raise the average gas price to Rs. 4,446.89 per metric million MMBtu, representing an increase of Rs. 2,646.18 per MMBtu. This proposed price includes the previous year’s shortfalls in the natural gas sector. Additionally, SNGPL has put forth a cost of service for regasified liquefied natural gas (RLNG) at Rs. 325.08 per MMBtu for the same period.
OGRA will conduct another session in Peshawar on March 27 and make its decision after that.
The textile industry has announced its opposition on SNGPL’s proposed gas bomb. The All Pakistan Textile Mills Association (APTMA) and Lahore Chambers will challenge the petition at the hearing today and seek an explanation on RLNG diversion and gas costs claimed by the gas distributor.
The textile industry also intends to address issues such as high unaccounted-for gas (UFG) rates in SNGPL’s network, planned expansions, and associated costs. Additionally, it seeks clarification on late payment surcharges, working capital expenses, and other operating costs.
The textile industry further aims to probe SNGPL’s proposed expenses and ensure transparency and fairness in the pricing mechanism.
Very Good !
Chalo awam nikalo rupayeea :)
only solution to switch to solar
Pak se zinda bhaag
Ghareeb mar jaen ge