SNGPL seeks a substantial 137.62% hike in gas prices

WEB DESK: Sui Northern Gas Pipelines Limited (SNGPL) is gearing up to implement a significant hike in gas prices, as it has formally submitted a request to increase rates by 137.62 per cent.

The application, filed by SNGPL, proposes a substantial raise of Rs1,715 per mmbtu, with the intended effective date for the increase set at July 1, 2023.

The request has been made to address the anticipated shortfall in revenue requirements for the fiscal year 2023–24, which is estimated to exceed Rs181 billion.

As per the application, the proposed new fixed rate for gas stands at Rs2,961.98 paise per mmbtu, a considerable jump from the current price of Rs1,246.49 per mmbtu.

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Notably, this application also includes a request for an additional increase of Rs.1,209.14 per mmbtu to cover arrears and an extra Rs56 per mmbtu to offset the impact of the rupee’s devaluation.

According to ARY News, the Oil and Gas Regulatory Authority is set to conduct a hearing on Sui Northern’s application on December 11.

This development suggests that consumers should brace themselves for the impending surge in gas prices, subject to regulatory approval.