Sui Northern Gas Company has requested the Overseas Gas Regulatory Authority (Ogra) to approve a Rs 64 per MMBTU gas price hike.
The company reports a deficit of Rs 20.582 billion this financial year. This shortfall includes Rs 489 million earmarked for the LPG AirMix project. Additionally, Sui Northern must cover costs related to transferring Reversed Liquefied Natural Gas (LNG) for household use.
These proposed adjustments correlate with High-Speed Fuel Oil (HSFO) fluctuations and crude oil prices.
From July 1, 2024, the firm seeks to increase the LNG supply rate to Rs. 1711.73 per MMBTU for all consumer categories. This adjustment would result in higher gas prices for home users.
Previously, the Sindh High Court maintained a provisional ruling that barred Sui Southern Gas Company (SSGC) from imposing unauthorized gas tariffs and meter fee hikes.
During the hearings, a two-judge panel chaired by Chief Justice Muhammad Shafiq Siddiqui reviewed grievances concerning these increases.
Advocate Tariq Mansoor highlighted that SSGC had revised billing structures, categorizing customers into protected and non-protected groups.
He argued against the unjust meter fee of Rs460, which is set for the colder months and wrongfully applied throughout the year. This fee has amassed over Rs11 billion from consumers in Karachi alone.
