SSGC, SNGPL seek raise in gas price

By Muhammad JuniadPublished On 04 Jan 2023

ISLAMABAD: The state-owned gas utilities have submitted their petitions with the Oil and Gas Regulatory Authority (Ogra), seeking an increase in gas tariff by Rs109.78-857.40 per MMBTU from July 1, 2021.

The Sui Southern Gas Company (SSGC) has asked for an increase in tariff by Rs109.78 per MMBTU and Sui Northern Gas Private Limited (SNGPL) Rs857.40 per MMBTU. According to the petitions, SNGPL has pleaded in the petition, asking for estimated revenue requirement (ERR) for the financial year 2021-22, sought the net increase in the prescribed price of gas by Rs857.40 per MMBTU from July 1, 2021.

The SNGPL in its petition has projected an increase of Rs1415.91 per MMBTU including the previous years’ shortfall of Rs66.75 per MMBTU for the financial year 2021-22 in normal business. The cost of RLNG, diverted towards the domestic sector, has been claimed in the petition at Rs27.940 billion as part of the cost of gas.

The SNGPL has sought an increase in revenue requirement for financial year 2021-22 by 35.38 percent to Rs283.099 billion from 209.113 billion. In its petition, SNGPL has also mentioned that it is also facing the previous year’s shortfall of Rs254.108 billion.

However SSGC, in its petition, has asked for an increase in the prescribed price of gas by Rs109.78 per unit for estimated revenue requirements for financial years 2021-22 mainly because of the increase in operating cost which has increased to Rs25.595 billion from Rs19.273 billion and return on assets which amounted to Rs7.704 billion.

Besides, SSGC has an estimated RLNG cost of service of Rs16.715 billion or Rs43.38 per MMBTU in RLNG head. The gas company is currently facing a shortfall of Rs34.994 billion.

However, in the petition, SSGC has estimated the estimated revenue requirement for 2021-22 at Rs251.596 billion down by 9.67 percent if compared with the revised estimated revenue requirement of the year 2020-21 at Rs278.520 billion.