MD SNGPL requests Ogra to allow equitable revenue requirements
News Report
Managing Director Sui Northern Gas Pipeline Limited (SNGPL) Ali J Hamdani said on Wednesday requested Ogra to allow just and equitable revenue requirements.
He made these remarks while considering SNGPL’s Petition regarding the Review of Estimated Revenue Requirement for FY 2021-22.
In response to the petition filed by SNGPL in respect of the review of its estimated revenue requirement for FY 2021-22, the Oil and Gas Regulatory Authority (OGRA) conducted a public hearing on December 1, 2021, in a local hotel.
SNGPL has filed a petition for an increase in the Prescribed Price by Rs 269 per MMBTU for the year 2021-22 and if prior years shortfall, already determined, is included, the requirement increases to Rs 907 per MMBTU.
In the public hearing MD SNGPL, Mr. Ali J Hamdani, while delivering opening remarks appreciated the OGRA for giving the Company an opportunity to present their case.
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He requested OGRA that their petition be considered positively allowing just and equitable requirements especially in areas where investments have already been made. SNGPL teams assisted MD who gave a detailed presentation on different aspects of the petition.
It is pertinent to mention that out of the total increase of 150% requested by the Company at the prescribed price, 111% increase is on account of the shortfall already determined by OGRA for prior years while the remaining increase of 39%, mainly represents the cost of gas which consists of 80% of the total costs.
An increase in the cost of gas is primarily associated with the increasing trend in crude oil prices and Rupee to dollar parity. The increase in prescribed price requested and consequently allowed by OGRA does not mean the direct increase in consumer price rather Federal Government determines the Consumer Sales prices keeping in view the socio-economic conditions of the Country.
After conducting a hearing, Ogra will issue a final decision regarding the prescribed price of gas. The regulator will send a decision to the federal government to notify consumers price of gas.
