Ogra Conducts Public Hearing on SNGPL’s 147% Tariff Hike Request


The Oil and Gas Regulatory Authority (Ogra) is conducting a public hearing in Lahore today on a petition by Sui Northern Gas Pipelines Limited (SNGPL) seeking a 147% increase in gas tariffs. SNGPL has requested an increase of Rs2,646 per mmBtu, aiming to set the new price at an average rate of Rs4,446.89 per mmBtu, which would result in a projected revenue shortfall of over Rs189 billion.

The public hearing in Lahore, scheduled for March 25, 2024, is part of Ogra’s process to determine SNGPL’s estimated revenue requirements and prescribed prices for FY2024-25. The petitioner has projected an average prescribed price of Rs4,446.89 per mmBtu, including previous years’ shortfalls, in the natural gas business for the upcoming fiscal year.

Additionally, SNGPL has revised its petition based on the revision in the indigenous gas consumer sale price, effective from Feb 1, 2024. The company’s petition reflects an increase of Rs2,646.19 per mmBtu in prescribed prices for the system gas business and Rs325.08 per mmBtu as the cost of supply for the RLNG business for FY2024-25.

Ogra has also scheduled another public hearing in Peshawar on March 27, 2024, to provide stakeholders, consumers, and the general public with an opportunity to voice their grievances regarding the proposed tariff hike. All categories of gas consumers have been invited to participate in the public hearings through their monthly gas bills.

The federal cabinet had previously approved a 67% increase in natural gas tariffs, effective from Feb 1, as part of efforts to meet the revenue requirements of gas utilities for the current year. However, the proposed tariff hike has faced opposition from the public, especially from lower-income groups, amid concerns about its impact on already high inflation levels in the country.

Story by Khalid Hasnain

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