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.
Pakistan is now feeling the impact of the closure of Strait of Hormuz. Due to the closure the LNG supplies are facing major disruptions.
The fears of price surge, gas crisis and load shedding are rapidly growing due to dozens of shipments being halted.
The sources suggest that in Pakistan, 22 LNG cargoes were scheduled to arrive in Pakistan by May. However, they have stopped due to the closure of the Strait of Hormuz.
Due to the closure, a sudden disruption has taken place in the imported liquefied natural gas. This has raised serious concerns about energy shortages across the country.
It has been warned by officials that the situation could significantly affect both pricing and supplies.
Also read: What will be the new gas prices in Pakistan?
