LAHORE (Dunya News) – The government is now ready for another gas price hike in Punjab and Khyber Pakhtunkhwa after preparing a plan for Sindh and Balochistan, as the Sui Northern Gas Pipeline Limited (SNGPL) has requested the Oil and Gas Regulatory Authority (Ogra) for up to a whopping 147% increase.
The company has requested an increase of Rs2,646.18 per mmbtu and requested to set a new average price of Rs 4446.89, arguing that it has estimated a revenue shortfall of Rs189.18 billion.
Now, the Ogra will conduct a public hearing on the issue on March 25 in Lahore and on March 27 in Peshawar.
If the request is approved, then the increase in gas price will be applicable from July 1.
Similarly, the Sui Southern has also sent a request to Ogra for gas price hike, which is expected to burden consumers by Rs79.63 billion.
The Sui Southern has requested an increase of Rs 324.3 per mmbtu, asking the regulator to fix a new average price of Rs 1740.80 per mmbtu.
It has estimated a total revenue shortfall of Rs79.63 billion in the application for the next financial year, out of which Rs56.69 billion is related to the locally produced gas and Rs22.93 billion in the RLNG.
The Ogra will hear the Sui Southern's application today in Karachi and in Quetta on March 20.
After the hearings, a final decision will be sent to the federal government. In case, Islamabad approves the move, the Ogra will issue a notification to increase the gas prices.