The gas crisis continues in Lahore, with both announced and unannounced gas load shedding leaving residents distressed.
LPG is also not available at government set rates. Although the official price is fixed at Rs304, it is being sold in the open market for Rs450 to Rs550. Due to the gas shortage, citizens are helpless to purchase expensive LPG.
Residents say that Sui gas is hardly supplied, yet they are receiving bills amounting to thousands of rupees. Even during the five to seven hours when gas is available, the pressure remains low.
Citizens further complain that the government has failed to enforce official LPG prices. They have urged the district administration and authorities to ensure implementation of the notified rates.
Will gas prices increase from July 1?
Sui gas companies have approached OGRA to seek a major increase in gas prices starting from July 1.
According to media reports, a request has been made to raise the average gas price to Rs5,306 per MMBTU. The companies have reported a total shortfall of Rs1,650 billion, covering losses from both the current and previous fiscal years.
Sui Southern Gas Company has sought Rs956 billion in revenue, including Rs411 billion for the upcoming fiscal year and Rs545 billion to cover previous shortfalls, bringing its total revenue requirement to Rs1,279 billion. The company has also requested Rs42 billion for LNG service costs and proposed increasing the average gas price to Rs5,306 per MMBTU.
Sui Northern Gas Pipelines Limited has also submitted a request to OGRA for a gas price hike. It has estimated a revenue shortfall of Rs8.73 billion for the next fiscal year and Rs585 billion in previous shortfalls. The company has further requested Rs67.67 billion for LNG service costs, along with a proposed charge of Rs376.33 per MMBTU for LNG services.
OGRA is scheduled to hear Sui Northern’s petition on April 21 and Sui Southern’s request on April 22.
Also read: Will gas prices increase from July 1?
