Massive hike in gas prices on cards

Massive hike in gas prices on cards

The Oil and Gas Regulatory Authority has accepted for hearing requests made my Sui Southern and Sui Northern Gas Pipelines Limited to hike gas tariff by up to Rs730 per MMBTU.

Sui Southern Gas Pipelines Limited (SSGPL) has requested for Rs391 per MMBTU increase in gas price while Sui Northern Gas Pipelines Limited (SNGPL) has demanded Rs730 per MMBTU hike in gas rate.

The gas companies need raise in tariffs to make up for their shortfall in revenue.

It merits mentioning here that gas tariff was increased by 112 percent from Ist January, 2023.

The ogra will start hearing SSGPL case on March 13 while case of SNGPL will be heard on March 20 in Lahore.

Both gas companies have requested raise in tariff for upcoming financial year.

As per deal with IMF, the government is now bound to transfer the increase in tariff on consumers instead of giving subsidy to them.

By increasing the gas tariff the gas companies will raise Rs356 billion from the consumers.