Following in the footsteps of Sui Northern Gas, Sui Southern Gas Company on Tuesday filed a petition with the Oil and Gas Regulatory Authority seeking a significant increase in gas prices for the province of Sindh.
The petition requests a price hike of Rs 226.18 per Million British Thermal Unit, which would bring the new average gas price to Rs 1696.39 per MMBtu. Currently, the average gas price stands at Rs 1470.21 per MMBtu.
SSGC has cited a projected revenue shortfall of Rs 47.77 billion for the current financial year as a primary reason for the price increase. The company further claims an additional revenue shortfall of Rs 95.40 per MMBtu in Balochistan, where it also operates.
The petition also seeks separate increases for transmission and distribution costs (Rs 150.67 per MMBtu) and depreciation difference (Rs 40.96 per MMBtu).
OGRA has scheduled a hearing on SSGC’s application for December 18th in Karachi. The decision on whether to approve the requested price increase will be made after considering all relevant factors and public feedback.
If approved, the gas price hike will impact both domestic and commercial users in Sindh. This could lead to increased energy costs for households and businesses, potentially putting a strain on finances especially during the upcoming winter months when gas consumption typically rises.
