Gas prices likely to increase in Pakistan

Sui Gas companies have approached OGRA for a major increase in gas prices from July 1. According to reports, an average gas price has been requested to be increased to Rs 5,306 per MMBTU.

The gas companies have shown a total shortfall of Rs 1,650 billion in losses for the next and previous financial years.

Sui Southern Gas Company has demanded Rs 956 billion in revenue, including Rs 411 billion for the next financial year and Rs 545 billion for the previous shortfall, while the total revenue requirements have reached Rs 1,279 billion.

Sui Southern has demanded Rs42 billion in LNG service costs. Sui Southern has also requested an increase of Rs5,306 per MMBTU in the average gas price.

Along with this, Sui Northern has also submitted a request to OGRA to increase the price of gas. Sui Northern is estimated to have a revenue shortfall of Rs 8.73 billion in the next financial year, while the shortfall in the previous shortfall is estimated to be Rs 585 billion.

Sui Northern has also demanded Rs 67.67 billion in LNG service cost. Sui Northern has requested to recover Rs 376.33 per MMBTU in LNG service cost.

OGRA will hear Sui Northern’s request on April 21 and Sui Southern’s request on April 22.