The Oil & Gas Regulatory Authority (OGRA) received a petition from SSGC asking for a 226.18 per MMBTU increase in gas prices.
SSGC Filed A Petition For Rise In Gas Prices
As per the notice of public hearing published by OGRA, SSGC presented a petition to the Authority for Review of its Estimated Revenue Requirement/Prescribed Prices for FY24 on October 9, 2023.
The petition was later amended on December 06, 2023.
However, the petitioner has stated that, in accordance with a federal cabinet resolution dated October 30, 2023, it has classified UFG disallowance in the Balochistan region as a revenue shortfall as part of the revenue requirement.
However, there will be a 47,773 million rupee shortfall in income required for FY24, SSGC’s projections
To make up for this shortfall, the petition seeks to increase the average prescribed price by Rs. 226.18 per MMBTU, with effect from July 1, 2023.
International Prices
Moreover, the international price of fuel oil, or crude oil, determines how much gas costs, as per the agreements between gas producers and the federal government.
The corporation proposes to set the average prescribed price at Rs. 1,696.39 per MMBTU, which would represent a 15.38 percent increase from the existing average sale price of Rs. 1,470.21 per MMBTU.
However, on December 18, OGRA will hold a public hearing in this regard.
SNGPL Petition
Prior to now, Sui Northern Gas Pipelines Limited (SNGPL) had petitioned OGRA to raise consumer gas prices by 137 percent.
The Authority recently held a public hearing on the subject, and an announcement of its judgment anticipated shortly.
To read our blog on “SSGC will turn off gas supply to most of KHI for upto 72 Hrs,” click here.