Gas utilities seek massive hike in gas prices in 2023

Sui companies have requested the Oil and Gas Regulatory Authority (OGRA) to allow hike in gas prices in 2023 by up to Rs 730 per Million British Thermal Unit (MMBTU) to address their revenue shortfall in Financial Year (FY) 2023-24.

Inflation-weary citizens brace for yet another heavy blow as Sui Northern Gas Pipelines Limited (SNGPL) seeks a price increase of Rs 730.39/MMBTU, while Sui Southern Gas Company Limited (SSGCL) requests Rs 391.69/MMBTU at the start of the upcoming fiscal year 2023-24.How to Check SSGC Duplicate Bill

SNGPL and SSGCL submitted separate petitions for the substantial price hike to determine their Estimated Revenue Requirement/prescribed prices for the next financial year.How To Check SNGPL Online Bills 2022

OGRA will hold a public hearing on the SNGPL petition in Lahore on March 20, 2023, and two more for SSGCL, with the first on March 13, 2023, in Karachi, and the second on March 17, 2023, in Quetta.

The authority has invited all interested and affected parties, including gas consumers and the general public, to provide comments, suggestions, and intervention requests.

If OGRA approves the requested gas price hike effective from July 1, 2023, sources indicate that consumers of the two gas utilities will pay Rs 356 billion. It is worth noting that the government has already increased gas prices by 112% from January 1, 2023.

According to sources, under the agreement with the International Monetary Fund (IMF), the government is obliged to raise gas prices and pass on the increase to gas consumers instead of providing subsidies.