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Home Business & Stock

SSGC, SNGPL seek increase in gas price

MM News Staff by MM News Staff
March 27, 2021

ISLAMABAD: The Sui Southern Gas Company (SSGC) and Sui Northern Gas Private Limited (SNGPL) have sought an upward revision of gas price to meet estimated revenue requirement (ERR) during the fiscal year 2021-22.

In formal petitions filed with the Oil and Gas Regulatory Authority (IGRA), SNGPL demanded that its prescribed price for the next fiscal year be increased by Rs1,416 per unit defined in million British thermal unit (mmbtu).

SNGPL has further demanded an additional revenue requirement of Rs367bn, including last year’s revenue shortfall of Rs254bn. The company has also demanded another Rs137.5 per unit increase as cost of service for re-gasified liquefied natural gas (RLNG).

The existing prescribed price approved by OGRA for SNGPL stands at about Rs645 per mmbtu. Meanwhile, Sui Southern Gas Company (SSGC) has sought Rs153 per unit or 20pc increase in its prescribed price for the next fiscal year, from about Rs779 per unit to about Rs932.

The regulator said SSGCL had worked out a revenue shortfall of about Rs35bn for next year to meet its revenue requirement of about Rs252bn, hence an increase of Rs110 per unit in prescribed price with effect from July 1.

It is worth mentioning here that OGRA in February allowed only Rs13.42 per unit increase in SNGPL’s prescribed price against its demand for a 123pc increase. Likewise, the regulator had also allowed Rs44 per unit (5.4pc) increase in the prescribed price for SSGC for the current fiscal year.

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