Lahore:
Sui Northern Gas Pipelines Limited (SNGPL) demanded an increase in gas prices on Friday and requested oil and gas-regulating authority (OGRA) to lift the ban on the issuance of new relations with domestic consumers.
It conducted the public consultation on these requirements in the SNGPL headquarters with chairman and Masroor Khan in the chairman. During the consultation, SNGPL requested an increase of RS735 per Million British Thermal Unit (MMBTU).
The tool also said that the regasified floating natural gas (RLNG) domestic compounds should be allowed immediately because a ban on them reduced its revenue. It claimed that the gas price should be increased so that the cost of expansion projects was fulfilled.
The representatives of the commercial, industrial and domestic consumers were strongly against the increase in price. 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 duty increase.
SNGPL, while explaining the causes of duty increase, said the proposed average fixed price for the financial year 2025-26 was set at RS2,485.72 per year. MMBTU, which added that 51% of the price increase was intended to provide expensive RLNG gas to system gas consumers.
It added that an additional 39% of the price increase was for the late payment tax (LPS) used at the gas sector’s quota, ie. circular debt. SNGPL stated that the proportion of operating expenses in the total revenue requirements in the company was only 4-6%.
