LAHORE: A public hearing on a plea filed by Sui Northern Gas Pipelines Limited (SNGPL) requesting a further 147% increase in gas tariffs is scheduled to take place in Lahore today, Monday, before the Oil and Gas Regulatory Authority (Ogra).
The business projects a revenue shortfall of more than Rs189 billion because it has asked for an increase of Rs2,646 per mmBtu and to fix the new pricing at an average cost of Rs4,446.89 per mmBtu. The administration is also planning to hold a public hearing in Peshawar on Wednesday, March 27, following today’s in Lahore.
On March 25, 2024, Ogra will hold a public hearing in Lahore to consider Sui Northern Gas Pipelines Limited’s petition for the establishment of its expected income needs and prescribed pricing for the fiscal year 2024–2025. According to a press release sent by the authority on Sunday, “The petitioner (SNGPL) has projected an average prescribed price of Rs4,446.89 per mmBtu including previous years’ shortfall, in the natural gas business FY2024–25.”
The petitioner has claimed an RLNG cost of service of Rs325.08 per mmBtu for FY25, according to the statement. On March 27, 2024, Ogra will hold a public hearing in Peshawar to provide interested parties, customers, and the general public a chance to air their complaints. Additionally, every type of gas customer has received an invitation to attend the public hearings on their monthly gas costs. The announcement further stated that “Ogra shall pass the decision after conducting public hearings.”
SNGPL states that it updated its appeal in light of Ogra’s notification on February 1, 2024, regarding the revision in the indigenous gas consumer sale price.
Company requests a rise of Rs 2,646 per mmBtu; there will be another public hearing in Peshawar on the 27th
“Our project for FY2024–25 reflects an increase of Rs2,646.19 per mmBtu as the cost of supply for the RLNG business for FY2024–25 and includes the shortfall from previous years (Rs475.95 per mmBtu) in the prescribed prices of the system gas business,” the plea said.
It is important to note that in the first week of February, the federal cabinet approved a 67 percent rise in the natural gas tariff, which went into effect on February 1. This increase appears to have been made in order to reach the income targets set by the gas utilities for the current year.
Following approval, the Petroleum Division sent a notification stating that the new pricing for consumers using up to 0.25 hundred cubic meters (hcm) is Rs200 per mmBtu, which is an increase of 66 percent. The new charge, which is 67 percent higher, is Rs250/mmBtu for customers using up to 0.5hcm.
Similar to this, Ogra publicly announced a rise in gas prices and fixed levies for all users nationwide in November of previous year, with effect from that day. Fixed monthly fees for residential “protected category” customers were raised by 3,900 percentage points, from Rs. 10 to Rs. 400, as per this notification. They were also required to pay a minimum of Rs. 108 in fees each month.
However, the general public has opposed the recently proposed gas rates, calling them a huge injustice to the lower middle class and the impoverished, who are already struggling with the worst inflation the nation has to offer.
“The new tariff appears to be an attempt to permanently crush the poor, thus we will never accept it. We will oppose this action at all costs. Enough is enough,” a customer informed Dawn.
