SNGPL seeks hike in gas tariff

LAHORE: Sui Northern Gas Pipelines Limited (SNGPL) has sought a Rs291 per MMBTU increase in gas transportation charges, ARY News reported on Monday.

The Oil and Gas Regulatory Authority (OGRA) held a public hearing on the proposed price hike, during which representatives from the CNG sector, textile industry, and other industrial users strongly opposed the increase.

Chairman of the CNG Association, Ghayas Paracha, accused SNGPL of shifting the burden of its inefficiencies onto consumers.

“SNGPL must reduce its own expenses instead of penalizing users,” he said.

He added that SNGPL had initially requested a Rs271 hike, and has now increased its demand by an additional Rs20.

“Gas is available in sufficient quantities, yet consumers are not receiving adequate supply,” Paracha noted.

The proposed increase is yet to be approved by OGRA.

Earlier, Sui Northern Gas Pipelines Limited (SNGPL) issued additional gas bills worth billions of rupees to industries for consumption dating back 10 years.

According to industry representatives, the bills cover additional RLNG charges for the period between 2015 and 2022.

They stated that they have already settled all gas dues for those years and cannot pay the extra charges to SNGPL.

Industrialists also complained that the additional RLNG bills are nearly 200 percent higher than previous amounts and SNGPL has given a two-day deadline for payment. They warned that if the government does not intervene, factories across the region may shut down.