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ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has submitted a proposal for a substantial hike in gas prices to meet its revenue requirements for the ongoing fiscal year.
The company, which caters to a vast consumer base in the North Central region, is advocating for the price of Sui gas to be set at Rs4446.89/MMBTU, reflecting a staggering surge of 147 percent.
Joining forces with Sui Southern, another major gas supplier, SNGPL aims to pass on the burden of increased costs to consumers. Should the proposal be sanctioned by the Oil and Gas Regulatory Authority (OGRA), consumers could face an additional financial strain of Rs79 billion over the next year.
Scheduled for March 25, SNGPL’s plea for a price adjustment highlights the pressing need for financial stability. The company’s proposed rate stands at Rs4446.89/MMBTU.
Meanwhile, Sui Southern Gas Company Limited is also seeking a price hike, with hearings scheduled in Karachi on March 18 and Quetta on March 20. Their proposed rate for the upcoming year is Rs1740.80/MMBTU.
Both gas entities find themselves grappling with significant revenue shortfalls, with SNGPL projecting losses of Rs189 billion and SSGC anticipating losses of Rs46 billion if corrective measures are not implemented.
The current fiscal year has already witnessed two prior increases in natural gas prices, with a nearly 200 percent surge in November followed by a 67 percent rise in February.