LAHORE – The Oil and Natural Gas Regulatory Authority (Ogra) on Monday held a public hearing in Lahore on the proposed hike in gas rates – the third in the current fiscal year – after Sui Northern asked for a hike of up to a whopping 147%.
With another hearing scheduled for Wednesday (March 27) in Peshawar, Sui Northern asked for an increase of Rs 2,646.18 per mmbtu and set a new average price of Rs 4,446.89 after claiming to have estimated a revenue shortfall of Rs 189. 18 billion.
If the request is approved, then the increase in the price of gas for consumers in Punjab. Khyber Pakhtunkhwa and Islamabad will apply from July 1.
As the hearing ended, Ogra officials said there was no need to raise gas prices based on Sui Northern’s demand and that a final decision would be made after the public hearings process was completed and objections were considered.
Earlier, Lahore Chamber of Commerce and Industry (LCCI) and All Pakistan Textile Mills Association (APTMA) termed the plan as a cruel move and decided to strongly oppose the same at the hearing.
LCCI Vice President Adnan Butt said gas prices in Pakistan are already much higher than the rest of the world and any further increase would force plant closures.
Similarly, APTMA is of the view that the Sui Northern authorities should be questioned on their performance and gas and electricity prices must be reduced.
Last week, Ogra held similar public hearings in Karachi and Quetta when Sui Southern sent a request for an increase of Rs 324.3 per mmbtu and asked the regulator to fix a new average price of Rs 1,740.80 per mmbtu — a move expected. will burden consumers with Rs 79.63 billion.
In the request for the next financial year, it has estimated a total revenue shortfall of Rs 79.63 billion, of which Rs 56.69 billion is related to locally produced gas and Rs 22.93 billion in RLNG.
After the hearing, a final decision will be sent to the federal government. In case Islamabad approves the move, Ogra will issue a notification to raise gas prices.
