SSGC seeks massive hike in gas prices

KARACHI: The Sui Southern Gas Company (SSGC) has sought a hike in gas prices by Rs109.78 per mmbtu during a public hearing of the Oil and Gas Regulatory Authority (OGRA), ARY NEWS reported.

According to details, the current rate charged by the SSGC stands at Rs679.56 per mmbtu and after an increase sought by them, it would be charged at Rs789.24 per mmbtu.

The SSGC claimed that it was facing losses of Rs3.34 billion in the sale of local gas besides also incurring losses of Rs16 billion on RLNG supply and thus need a hike in prices to manage it.

It further emerged that SSGC has estimated the dollar exchange rate at Rs169 while presenting its calculations before the OGRA.

It is pertinent to mention here that the country is already facing an acute shortage of gas supply owing to repair works as gas fields.

The Sui Southern Gas Company (SSGC) on Tuesday suspended the supply of natural gas to the industrial zone in Karachi.

According to a spokesperson of SSGC, the gas utility was receiving 200 MMCFD to 250 MMCFD less gas than usual. He maintained that owing to the acute shortage of gas, SSGC cut gas supply by 50 percent to the KEPTO power plant.

The spokesperson said that the gas utility was facing difficulties in meeting the demands of domestic consumers. He claimed that the company was providing gas only to export industries.

On June 20, the SSGC had decided to disconnect supply to CNG stations and industrial units.