The Sui Southern Gas Company (SSGC) has once again requested a 15.38% increase in gas prices for the current fiscal year to address the growing expenses related to gas and other components, as reported by The News on Wednesday.
In a petition submitted to the Oil and Gas Regulatory Authority (Ogra), SSGC is seeking to revise the rate from the existing Rs1,470.21 per MMBtu to Rs1,696.39 per MMBtu, representing an increase of Rs226.18 per MMBtu, effective from July 1 of the ongoing financial year.
The company’s petition to Ogra outlines an estimated revenue requirement of Rs47.773 billion for the fiscal year 2023-24. The majority of the prescribed price comprises the cost of gas, accounting for over 85% of the determined price.
SSGC emphasizes that the cost of gas is linked to the international price of crude oil/fuel oil, as stipulated in agreements between the federal government and gas producers. Additionally, the petition includes specific amounts for the LPG air-mix projects and to offset revenue shortfalls from Balochistan province.
Simultaneously, SSGC has submitted another petition seeking a revision of the security deposit for domestic consumers (system gas & RLNG). The company proposes adjusting the gas supply deposit (GSD) based on the highest three months of consumption during the year, with recovery occurring over six months in equal installments.
Ogra has invited comments from all interested and affected parties, including gas consumers and the general public, in response to these petitions. A public hearing is scheduled for December 18, 2023, in Karachi, where the regulatory authority will assess and determine the gas prices.