Gas company seeks another tariff hike by 137%

Sui Northern Gas Pipelines Limited (SNGPL) has sought another hike in gas tariff by 137.62% per Metric Million British Thermal Unit (MMBtu), ARY News reported on Tuesday.

Gas consumers are expected to see another massive hike in tariff which was sought by the Sui Northern Gas Pipelines Limited (SNGPL).

The gas company sought the implementation of the increased tariff by Rs1,715 per MMBtu from June 2023. The company sought a fresh hike to cover income requirements in its plea.

The SNGPL stated in its plea to the Oil and Gas Regulatory Authority (OGRA) that it would face a shortage of funds worth Rs181.51 billion in the fiscal year 2023-24, therefore, the gas price should be fixed at Rs2,961.98 per MMBtu.

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The current gas price is Rs1,246.49 per MMBtu, whereas, the company seeks a hike of Rs1,209.14 per MMBtu in terms of arrears, whereas, an increase of Rs56.48 per MMBtu was sought in terms of rupee devaluation.

The OGRA will hear SNGPL’s plea on December 11.

Last month, it was learnt that the caretaker government decided to increase the gas prices in Pakistan again.

Speaking to the media, Caretaker Finance Minister Dr Shamshad Akhtar said that gas prices will increase from January 2024 as Pakistan has informed the International Monetary Fund (IMF) regarding the review of the power tariff.

Read More: Electricity tariff hiked by Rs3.07 per unit

She said the government would continue its efforts to achieve the stability of the overall economy and balanced growth, by reducing debts and carrying out development priorities as well as governance reforms in government enterprises.

After the staff-level agreement, Pakistan will receive about 70 million US dollars, after which the amount of assistance to Pakistan under the IMF programme will reach about 1.9 billion dollars.

The finance minister said that under the stand-by agreement, it has been agreed to reduce costs in the energy sector and restore efficiency in the sector.

Shamshad Akhtar said that the circular debt of the power and gas sectors has crossed 4 per cent of our Gross National Product (GNP). Urgent action is needed to bring it down. We have started work in this regard and electricity and gas rates have been adjusted. She said that continuing the exchange rate policy based on market dynamics and increasing foreign exchange reserves are among our priorities.