Punjab, KPK gas consumers to face an increase in gas bills

The consumers of KPK and Punjab provinces should be ready to face an increase in gas bills.

Sui Northern Gas Pipeline Limited (SNGPL) has requested a significant increase in gas prices in order to make up for a revenue shortfall, which will result in higher gas prices for consumers in Punjab and KPK.

According to the regulator, OGRA held a public hearing to review the petition submitted by Sui Northern Gas Pipelines Limited (SNGPL) (petitioner). Ogra raises gas prices up to 45%

The petition for a review of its anticipated revenue requirement and prescribed price for the fiscal year 2022–2023 was submitted to the authority on October 14, 2022, in accordance with Section 8(2) of the Oil & Gas Regulatory Authority Ordinance, 2002, as read with Rule 4(3) of the Natural Gas Tariff Rules, 2002.

The public hearing was open to all interested parties, consumers, and members of the general public, who were encouraged to voice their opinions regarding SNGPL’s petition. All the stakeholders attended the hearing and presented their points of view. Cabinet okays setting up gas utility courts

In the instant petition, SNGPL has projected a shortfall in revenue requirement of Rs. 178,814 million, including Rs. 445 million on account of the LPG Air-Mix project for FY 2022–23, and sought an increase in its average prescribed price by Rs. 488.08 per MMBTU effective July 1, 2022.

The gas utility wants to install LPG air mix plants in remote areas of the country where the pipeline was not available.

LPG air mix gas is the most expensive.

These projects had previously faced opposition due to the higher cost of providing LPG to consumers living in remote areas of the country.

Now, SNGPL has sought an amount of Rs. 445 million on account of the LPG Air-mix project for FY 2022–23.

The petitioner is also asking for an increase in the average prescribed price of Rs. 1,294.02/mmbtu with effect from July 1, 2022, totaling Rs. 295,268 million, which is the shortfall from prior years.

Aside from the above, the petitioner has estimated the RLNG cost of service for 2022-23 at Rs. 1,015.64/MMBTU, including Rs. 762.44/MMBTU for the differential impact of RLNG diversion.