Gas Companies Seek Price Hike to 54%
Pakistan’s two gas distribution companies, SSGCL and SNGPL have sought an increase up to 54 percent so that these firms might offset revenue losses they see expected in the current financial year.
OGRA Considers Price Hike
OGRA would now hold public hearings of 5 November and 8 November for this matter.
The company needs 53.5% increment with Rs.669.07 per mmBtu to raise the already offered rate of SSGCL from Rs. 1,251.32 per mmBtu to Rs. 1,920.39 per mmBtu.
SSGCL: Gas Companies Seek Price Hike to 54%
Further, SSGCL is asking for Rs.643 billion head adjustment for deficiencies of earlier years. This translates into Rs. 3,073.91 per mmBtu with the cost of services for RLNG being Rs. 46.13 per mmBtu.
SNGPL: Gas Companies Seek Price Hike to 54%
The mark sought by SNGPL is 3.66% to offset the under-recovery of Rs 20.582 billion it is expecting to under recover for which it plans to generate Rs 489 million from its LPG Air Mix Project.
A demanded increase of 64.16% would push up the average prescribed rate of SNGPL’s from 1,746.22 per mmBtu to 1,810.38 per mmBtu.
SNGPL also brought into induction the cost of diverted RLNG to indigenous consumers. In the meantime, its RLNG cost of service was at Rs. 304.27 per mmBtu.
The impact of gas prices bears relevance for all categories of the utility spectrum in the case of approval by OGRA.
Gas Companies Seek Price Hike to 54%
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