ISLAMABAD: Federal government has decided to raise Rs98 per mmbtu for SNGPL consumers and Rs109.91 per mmbtu for SSGC consumers in accordance with the International Monetary Fund ninth review prior condition of zero increase in gas sector circular debt for the remaining four months of the current fiscal year.
Oil and Gas Regulatory Authority (Ogra) will raise tariffs immediately to arrest any further addition to the circular debt, Business Recorder reported on Saturday, which would stop the projected addition of Rs70 billion into the existing Rs 670 billion circular debt of the two gas companies.
Ishaq Dar, the finance minister, stated at a press conference on Friday that the government has promised to halt any further increases in circular debt. He also stated that although the Petroleum Division has the actual numbers, approximately Rs 170 to Rs 270 billion is added to the circular debt for gas each year.
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However, if 11.5 percent price hike for SNGPL and 11 percent tariff for SSGC is not implemented then the circular debt will rise to Rs 740 billion by end-June 2023, according to an official of petroleum division on the condition of anonymity.
At present, the gas tariff for residential consumers is Rs 450 per mmbtu in the Sui Southern Gas Company system against the prescribed price of Rs 850 per mmbtu and Rs 400 per mmbtu in the Sui Northern Gas Pipeline Limited system against the prescribed price of Rs 1,007 per mmbtu, showing a significant gap between sale price and actual cost of gas.
![Local residents at the Swat River, which is overflowing due to pre-monsoon heavy rains in the area on the outskirts of Mingora, the main town of Pakistan's Swat Valley [Sherin Zada/AP]](https://mmnews.tv/wp-content/uploads/2025/06/Flooding-in-Swat-river-120x86.jpg)
