SSGC seeks further gas price hike

ISLAMABAD: The Sui Southern Gas Company (SSGC) Limited has formally requested the Oil and Gas Regulatory Authority (OGRA) to approve an increase in gas prices for consumers in Sindh and Balochistan.

Sources said that the SSGC has submitted a request to OGRA seeking a further hike of Rs274.40 per MMBTU, retrospectively from July 1, 2024. The company aims to establish a new average gas price at Rs1740.80, compared to the current average of Rs1696.39 per MMBTU.

The application highlights SSGC’s revenue shortfall, amounting to Rs79.63 billion. Specifically, the revenue shortfall for local gas is estimated at Rs56.69 billion, with the remaining shortfall attributed to RLNG, totaling PKR 22.935 billion.

A revenue shortfall signifies a situation wherein actual or projected earnings fall below anticipated targets. This can impact financial stability, budgeting, and investment plans within an organization.

OGRA is scheduled to conduct a hearing on the application in Karachi on Monday, with another hearing slated for March 20 in Quetta.