Sui Northern Gas Pipeline Limited’s request to raise gas rates by a staggering 147 percent http://staggering 147 percentfor the fiscal year 2024–25 will be the subject of a public hearing today in Lahore by the Oil and Gas Regulatory Authority (OGRA).
As a result of this hearing, gas prices will rise for the third time this year. More pressure will be placed on society’s less wealthy segments as a result of this decision. As per a national newspaper, the projected increase in gas prices is set to take effect on July 1, 2024.
SNGPL has a revenue gap of over Rs. 189 billion. Because of this, it seeks to increase the average price of gas by Rs. 2,646.18 per MMBtu to Rs. 4,446.89 per metric million MMBtu. The natural gas industry’s losses from the prior year are included in this recommended pricing. Furthermore, at the same time, SNGPL has proposed a cost of service of Rs. 325.08 per MMBtu for regasified liquefied natural gas (RLNG).
On March 27, OGRA will have another session in Peshawar before making a decision.
The textile sector has declared its resistance to the proposed gas bomb by SNGPL. At today’s session, the All Pakistan Textile Mills Association (APTMA) and Lahore Chambers will contest the petition and demand an explanation about the RLNG diversion and gas expenses that the gas distributor is claiming.
The textile sector also plans to deal with challenges, including projected expansions and related expenditures, as well as high rates of unaccounted-for gas (UFG) in SNGPL’s network. It also requests information on additional operational expenditures, working capital charges, and late payment fees.
The textile sector also seeks to verify pricing system fairness and transparency, as well as investigate SNGPL’s planned expenditures.
