ISLAMABAD: Pakistan’s two major gas utilities — Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) — have sought significant increases in their prescribed gas prices, citing mounting revenue shortfalls and additional costs associated with imported RLNG diversion.
SNGPL has proposed a 10.7 per cent hike, equivalent to Rs189 per million British thermal unit (mmBtu), raising the prescribed price from Rs1,766.50 to Rs1,955.50 per mmBtu for the current fiscal year. The Lahore-based utility reported a Rs53 billion revenue shortfall, alongside an Rs582 million subsidy for LPG air-mix plants and an additional Rs317 per mmBtu cost due to RLNG diversion. This brings the total estimated cost increase to Rs506 per mmBtu, or 28.7 per cent, taking the overall price to Rs2,272 per mmBtu.
Meanwhile, Karachi-based SSGCL has requested a 7.6 per cent increase or Rs125.41 per mmBtu, seeking to raise the existing rate from Rs1,658.56 to Rs1,783.96 per mmBtu for FY2025-26. The company cited a Rs24 billion shortfall in its revenue requirement for the current fiscal year and an “unrecouped” deficit of Rs34.3 billion from previous years. Including these amounts would lift its total demand to Rs1,962.55 per mmBtu, while an additional Rs57.87 per unit has been claimed for RLNG service costs, pushing the total to Rs2,021 per unit.
The Oil and Gas Regulatory Authority (Ogra) has scheduled a public hearing on November 7 to review these petitions. The government, under commitments to the International Monetary Fund (IMF), is required to issue biannual gas price notifications to prevent further buildup of the circular debt, which has already exceeded Rs3 trillion.
Story by Khaleeq Kiani
