ISLAMABAD – Gas consumers in Pakistan are likely to face a significant hike in prices in coming days amid fluctuations in global oil prices and rising demand for the commodity in the winter season.
Reports said Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have filed petitions to the Oil and Gas Regulatory Authority (OGRA), seeking an increase in average gas prices.
Both companies have asked the authority to bring the proposed price increases into effect from July 1 of the current fiscal year.
Proposed Gas Prices
SNGPL has sought an increase of Rs10.40 per million British thermal units (MMBTU) in its average gas price. If approved, the new price would surge to Rs1,712.40 per MMBTU from Rs1,702.
Meanwhile, Sui Southern has requested an increase of Rs366.75 per MMBTU, proposing to set its average gas price at Rs2,071.75 per MMBTU.
SNGPL has also included Rs60.147 billion in liquefied natural gas (LNG) service costs in its proposed gas price. According to the application, the LNG cost for the company will amount to Rs471.16 per MMBTU.
In its application, Sui Northern stated that limited availability of locally produced gas during the winter season would require additional arrangements to meet demand. For this purpose, the company would need 16 LNG cargoes.
Both gas companies have also cited an increase in international crude oil prices as a reason for seeking higher gas rates.
OGRA will conduct hearings on the applications submitted by Sui Northern and Sui Southern before making a decision regarding the proposed gas prices.
