Islamabad:

Gas consumers over Pakistan may have a greater financial burden from July, as both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have applied to RS2372 per year. MMBTU hiking trip in prescribed gas price.

SNGPL has been searching for a steep increase in RS708/MMBTU in gastariffs, while SSGC has asked for RS2372/MMBTU hiking in prescribed gas tariff for the next financial year.

According to available documents, both companies have filed petitions for Oil and Gas Regulatory Authority (OGRA) to determine new gas prices for the financial year 2025-26.

SNGPL has sought AGRA’s approval to increase the average prescribed price of natural gas for RS2,485.72 per year. MMBTU for FY 2025-26 high from the existing RS1772/mmbtu.

The proposed price increase is primarily driven by a deficit in revenue needs, corresponding to the RS207,435 million, and a significant increase in the cost of gas, including both original and regasified liquid natural gas (RLNG).

The petition also highlights an increase in the cost of original gas projected for RS231,604 million, as well as the cost of RLNG Derease, estimated at RS299,936 million.

In addition, operating costs have increased significantly, with SNGPL citing RS37,007 million for HR and other expenses. Financing costs related to late payments also contribute to the request for the price increase with the additional fee in total of RS97,150 million.

In addition, SNGPL has proposed significant capital costs for expansion of the gas network, including laying pipelines and additional measures to control the unconfate of gas (UFG).