The Sui Southern Gas Company (SSGC) has formally requested the Oil and Gas Regulatory Authority (Ogra) to authorize a significant gas price increase starting July 1, 2024.
SSGC proposes a price rise of Rs324 per million British thermal units (mmbtu), aiming for a new average rate of Rs. 1740.80 per mmbtu. This increase, if sanctioned, would result in an added financial load of Rs79.63 billion for gas consumers countrywide.
SSGC justifies its request by highlighting an anticipated revenue shortfall of Rs. 79.63 billion for the next fiscal year. This deficit comprises Rs56.69 billion from local gas sales and Rs22 billion from transactions involving Re-gasified Liquefied Natural Gas (RLNG), with an additional renovation shortfall of Rs935 million.
Ogra plans to review SSGC’s petition during hearings set for tomorrow in Karachi and March 20 in Quetta, continuing the trend of gas price adjustments seen in the current fiscal year.
Gas tariffs have escalated twice recently, with a 200% increase from November 1, 2023, and a subsequent 67% hike for domestic consumers from February 1, 2024. These adjustments have collectively imposed an extra Rs. 643 billion on gas consumers nationwide.
 has petitioned Ogra for a significant gas price increase starting July 1, 2024. The proposed hike aims to raise the average gas price to Rs. 1740.80 per mmbtu.){kind=link}