Ogra hears SNGPL's plea for tariff hike
SNGPL spokesperson Adnan Rafiq told The Express Tribune that demand for gas tended to increase during winter and weather conditions usually caused pressure at source to decline. STOCK IMAGE
The Sui Northern Gas Pipelines Limited (SNGPL) on Friday demanded an increase in the gas prices and requested the Oil and Gas Regulatory Authority (OGRA) to lift the ban on the issuance new connections to domestic consumers.
The conducted the public hearing on these demands at the SNGPL headquarters, with Chairman OGRA Masroor Khan in the chair. during the hearing, the SNGPL requested for an increase of Rs735 per million British thermal unit (MMBtu).
The utility also said that the regasified liquefied natural gas (RLNG) domestic connections should be allowed immediately because a ban on them was reducing its revenues. It argued that the gas price should be increased, so that expenses on the expansion projects were met.
The representatives of the commercial, industrial and domestic consumers strongly opposed the price increase. They argued that the people were already burdened, adding that many commercial consumers had disconnected their gas connections. Hotels and textile sectors also opposed the tariff hike.
The SNGPL, while explaining the reasons for tariff hike, said that the proposed average fixed price for fiscal 2025-26 was set at Rs2,485.72 per MMBtu, adding that 51% of the price increase was meant for providing expensive RLNG gas to system gas consumers.
It added that another 39% of the price increase was for the late payment surcharge (LPS) applied to the gas sector's dues ie, circular debt. The SNGPL stated that the share of operating expenses in the total revenue requirements of the company was only 4-6%.
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