Sui Northern Gas has requested an increase in gas prices for the third time this year. Today, the Oil and Gas Regulatory Authority (Ogra) is hearing the company’s request to increase the price of gas by 155% in Lahore.
The Chairman of Ogra is presiding over the hearing and has stated that the prices do not have to increase as much as is being reported in the media. Whether the rates will be approved or not will be decided after review, and any changes regarding the gas prices will take effect from July 1.
The consumption of natural gas is increasing while its availability is declining by 9% annually. A few years ago, 3 thousand tons of LPG were being used, but now it has increased to 5 thousand tons. Therefore, Ogra is taking into account the problems of domestic, industrial, commercial, and other consumers while deciding on the prices.
Sui Northern has proposed a price of 4 thousand 489 rupees per MMBtu and is estimated to have a shortfall of Rs 189 billion 18 crore in revenue. If the price increase is approved, bills are expected to increase by an average of 155%. For instance, the customer whose gas bill was earlier Rs 100 has become Rs 600, and now the bill of Rs 600 will be Rs 1500. It should be noted that the price of gas has increased by 600% in the previous year. However, Chairman Ogra added that the prices demanded by SNGPL may also come down
