ISLAMABAD: The Sui Southern Gas Company Limited (SSGC) has sought an increase in the prices of gas by Rs226.18 per million British thermal units (mmBtu), ARY News reported on Tuesday.
The Oil and Gas Regulatory Authority (Ogra) held a public hearing on an SSGC’s petition seeking review of its estimated revenue requirement for financial year 2023-24.
According to the notice, SSGC filed a petition on October 9, 2023, which was subsequently amended on December, 06, 2023, before the Authority for Review of its Estimated Revenue Requirement/ Prescribed Prices for FY24.
The petitioner has informed that it has included UFG disallowance in Balochistan region as revenue shortfall as part of revenue requirement in the light of the decision of federal cabinet dated October 30, 2023.
It projected a shortfall of Rs47,773 million in its revenue requirement. It requested an increase of Rs226.18 per mmBtu in its average prescribed prices effective from July 1, 2023.
The current average sale price is Rs1,470.21 per MMBTU and the company wants the average prescribed price to be set at Rs1,696.39 per MMBTU, reflecting an increase of 15.38 percent.
The prices of gas is linked to the international price of crude oil/fuel oil by the agreements between the federal government and the gas producers.
A day earlier, Sui Northern Gas Pipelines Limited (SNGPL) sought average prescribed price of Rs2,961.98 per million British thermal units (mmBtu) for gas supply to compensate for the increase in cost of gas/re-gasified liquefied natural gas (RLNG) and other components.
The petitioner projected a shortfall of Rs179,160 million in its revenue requirement, including Rs697 million on account of liquefied petroleum gas (LPG) air-mix plants. It requested an increase of Rs506.35 per mmBtu in its average prescribed price effective from July 1, 2023.
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