The Sui Southern Gas Company Limited (SSGC) has sought an increase of Rs. 392 per million British thermal units (MMBTU) in its prescribed prices for the current fiscal year 2023-24 (FY24) to meet its revenue shortfall of Rs. 98 billion.
In this regard, the Oil and Gas Regulatory Authority (OGRA) conducted a public hearing on Thursday to seek comments and points of view from consumers, the general public, and stakeholders on the review petition filed by SSGC and review its estimated revenue requirements and prescribed prices for FY24.
In the petition, SSGC projected a shortfall in revenue requirement of Rs. 266 billion, including Rs. 25 billion on account of an unrecouped shortfall for Regasified Liquefied Natural Gas (RLNG), and sought an additional increase of Rs. 32.62 per unit in its prescribed prices to meet RLNG supply requirements for FY24.
In the current fiscal year, the government has already increased consumer gas prices by up to 124 percent in order to collect Rs. 310 billion in revenue from two gas companies. Based on OGRA-approved prices, the government must pass on the impact to various consumer categories while keeping its sociopolitical priorities in mind. Pertinently, the law requires that consumer-end gas prices be revised twice a year.
