ISLAMABAD: Gas prices are likely to increase as both the Sui companies (SNGPL, SSGC) have sent OGRA a summary of up to a 28.62 percent hike.
In two separate review petitions filed by the Sui companies with OGRA, for the determination of estimated revenue requirements/fixed gas prices for the ongoing fiscal year 2025-26, SNGPL has sought an increase in the average price by 28.62 percent or Rs 505.64 per million British thermal units, while SNGPL has increased the price of SSG by as much as 21.82 percent or Rs 361.87 per MMBTU for FY2025-26.
Both state-owned companies, SNGPL and SSGC, have claimed a combined shortfall of over Rs 77 billion in their review petitions to meet rising costs and system inefficiencies. According to the petition, SNGPL has estimated a revenue shortfall of Rs 52.958 billion for the financial year 2025-26, due to higher imported RLNG cost, operating expenses, and depreciation.
SNGPL has sought an increase of 28.62 percent or Rs 505.64 per million British thermal unit (MMBTU) in the average suggested price, which includes an increase of Rs 189 per MMBTU for the supply of indigenous gas and an increase of Rs 316.64 per MMBTU for RLNG cost services, while SSGCL has increased the same amount by 2 percent. 361.87 per MMBTU, which includes Rs. 125.41 per MMBTU for the domestic gas business, Rs. 178.59 per MMBTU for the recovery of past shortfalls, and Rs. 100 per MMBTU as cost of RLNG services.
SNGPL has sought an increase of Rs. 505.64 per MMBTU, taking its average fixed price to Rs. 2272.14 per MMBTU. For domestic gas supply, SNGPL has sought an increase of Rs. 189 per MMBTU, taking its proposed prices to Rs. 1,955.50 per MMBTU from the current Rs. 1,766.50. While for the RLNG service cost, SNGPL has sought Rs. 316.64 per MMBTU. SSGC has estimated a shortfall of Rs 24.049 billion and attributed it mainly to rising gas procurement costs, depreciation, and finance charges. SSGC has sought an increase of Rs 361.87 per MMBTU and has increased its average fixed price from the current Rs 1,658.55 per MMBTU to Rs 2020.42 per MMBTU.
For its domestic gas business, SSGC has sought an increase of Rs 125.41 per MMBTU in its average fixed price from the current Rs 1,658.55 per MMBTU to Rs 1,783.96 per MMBTU. Similarly, Rs 178.59 per MMBTU has been sought for the recovery of past shortfalls and Rs 57.87 per MMBTU as the cost of RLNG services.
Both the SUI companies argued that this increase is necessary to recover the increasing cost of gas linked to international crude and fuel oil prices, as per the existing agreements between the federal government and the gas producers. OGRA will hold a separate public hearing in November to review and determine the merits of the proposed revision. The public hearing of SSGC will be held on November 11 in Karachi, while the hearing of the SNGPL case will be held on November 7 in Lahore.
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