Pakistani customers are in for more financial shock with a recent tariff hike announced by the Gas company. Sui Northern Gas Pipelines Limited (SNGPL) is requesting a further increase in the gas tariff, proposing a hike of 137.62% per Metric Million British Thermal Unit (MMBtu). As per the notification, the prices would be increased by 137%, which is double the current rate.
Sui Gas Price in Pakistan
The gas company has cited rising production costs as the main reason behind the proposed tariff hike. The company says it is facing pressure from its major suppliers due to a shortage of supply from the central government. This, coupled with increased transportation and maintenance costs, has made it impossible for the Gas company to maintain its current metrical rates. The proposed tariff increase has to be approved by the Oil and Gas Regulatory Authority (OGRA). The regulator is expected to review the proposal in the coming weeks. The news of the proposed tariff has sent shockwaves across the country as most consumers are already reeling from the high cost of living.
Gas Price in Pakistan Today
The gas company has requested the enforcement of a heightened tariff, amounting to Rs1,715 per MMBtu starting from June 2023. In its appeal to the Oil and Gas Regulatory Authority (OGRA), the company is seeking a new tariff increase to address its financial needs. According to Sui Northern Gas Pipelines Limited (SNGPL), it anticipates a fund shortfall of Rs181.51 billion in the fiscal year 2023-24, prompting the proposal to set the gas price at Rs2,961.98 per MMBtu.
New Gas Price in Pakistan
The existing gas price stands at Rs1,246.49 per MMBtu, with the company proposing a hike of Rs1,209.14 per MMBtu for arrears and an additional increase of Rs56.48 per MMBtu to account for rupee devaluation. The plea from SNGPL will be reviewed by OGRA on December 11. In a recent development, it was revealed that the caretaker government has decided to implement another round of gas price increases in Pakistan. Caretaker Finance Minister Dr. Shamshad Akhtar, while addressing the media, announced that gas prices are set to rise from January 2024, following Pakistan’s communication to the International Monetary Fund (IMF) regarding the review of power tariffs.