ISLAMABAD: The Sui Southern Gas Company (SSGC) has requested an increase of Rs669 per million British thermal units (MMBTU), a significant hike over current rates in its estimated revenue requirement petition for fiscal year 2024-25 submitted to the Oil and Gas Regulatory Authority (Ogra).

Currently, SSGC has set its MMBTU price at Rs1,251 and asking a raise to Rs1,920, marking a significant jump.

In the petition, the SSGC has highlighted a revenue deficit of approximately Rs6.43 billion. The SSGC’s application notes that current gas prices do not reflect the true cost of delivery, especially in the context of sharply increasing import costs and the financial strain caused by inflation.

Both SSGC and SNGPL have argued that their revenue requirements cannot be met under current rates, pointing to increased operational expenses and revenue deficits as primary justifications for the proposed hikes.

The regulator has issued public notices and scheduled separate hearings for the petitions.

The SNGPL’s petition will be heard on November 6, 2024, at its headquarters in Lahore, while the SSGC’s hearing is scheduled for November 8, 2024, at its Karachi headquarters.

Copyright Business Recorder, 2024