SNGPL seeks an increase in gas prices by 66%
Sui Northern Gas Pipeline Limited (SNGPL) has sought a massive increase in gas price up to 66 percent for the financial year 22-23.
The oil and Gas Regulatory Authority held a public hearing in Lahore on Wednesday.
The regulator considered SNGPL’s petition to determine its Estimated Revenue Requirements and prescribed prices for FY 2022-23.
The gas utility has estimated the average Prescribed gas Price at Rs. 920.88/MMBtu for FY 2022-23.
SNGPL also required to recover the previous year’s shortfall of Rs. 1,172MMBtumbtu.
Accordingly, the petitioner had requested the aggregate average prescribed price of Rs. 2,074.89 per MMBTU.
It included previous years’ shortfall in the natural gas business.
The Petitioner has also requested to allow Rs. 490.18 per MMBTU on account of RLNG cost of service w.e.f July 01, 2022, for RLNG business. It included Rs. 330.68/MMBTU on account of the differential impact of RLNG diversion.
SNGPL’s shareholders approve a 40% cash dividend
CNG industry terms SNGPL’s gas price increase unjustified
The CNG industry has termed weighted average cost of gas (Wacog) legislation illegal as provinces were not taken on board to seek consent.
During a public hearing held in Lahore by the Oil and Gas Regulatory Authority (Ogra), the senior leader of the All-Pakistan CNG Association, Ghayas Paracha opposed increased rates of gas and pointed out irregularities in the distribution of gas to the customers.
He said that the Wacog gas bill was illegal as the CCI committee of four provinces had not granted its approval.
Paracha said that Wacog gas pricing could not be implemented without taking all stakeholders into confidence.
He said that the line losses of gas companies had increased too much. The separate UFG applied to the transmission and distribution of gas is unacceptable, he said.
He said that charges of pipeline capacity and terminal charges including retaining charges had not been reviewed for several years. He urged to review them now.
Under the third party rules, he said that there would be a uniform tariff for all companies and sectors and added there should be no discrimination.
He said that government companies had failed to import LNG and therefore, Private companies should be allowed to import gas to fulfill their demand.
It is illegal to close CNG stations. Paracha said the company could reduce gas supply only in case of gas shortages.
He welcomed MD Sui Northern’s statement to allow private parties to distribute gas.
