The Oil and Gas Regulatory Authority (Ogra) on Wednesday gave go-ahead to Sui Southern Gas Company Limited for increasing gas tariff by Rs 7.54 per mmbtu and Sui-Northern Gas Pipelines Limited by Rs 5.08 per mmbtu for the next fiscal year.
According to Ogra spokesman Jawad Naseem this tariff would become effective after the approval of the federal government on July 1, 2011. Jawad said that on the part of the authority it has approved the gas tariff hike and if the government approves the increase, it would come into force from July 1, 2011.
He said that SNGPL needs revenue worth Rs 220 billion while its current income stands at Rs 216 billion. The Sui Southern Company will require Rs 146.61 billion in revenue for next fiscal year as its income stands at Rs 144 billion. If the government does not allow Ogra any increase in gas tariff for the SNGPL and SSGCL both the companies will have to face a total deficit worth Rs 6.58 billion. He said that Ogra is an independent body, empowered to make unbiased decisions with respect to determination of revenue requirements of gas utilities and resolution of consumer complaints, after providing opportunity of hearing to the respective stakeholders.