ISLAMABAD: Days after a hefty increase in consumers prices of natural gas, the Sui Southern Gas Company Ltd (SSGCL) has sought to jack up its prescribed prices by Rs392 per million British thermal unit (mmBtu) with effect from July 1 to meet its revenue shortfall of about Rs98bn for 2023-24.

The Oil and Gas Regulatory Authority (Ogra) on Thursday said it had accepted the petition for a public hearing.

It said the Karachi-based company had estimated its total revenue requirement for the next fiscal year at Rs266bn but its sales revenue under the existing prescribed price would yield only Rs168bn during the year.

Therefore, the remaining gap of Rs98bn had to be met through an increase in the prescribed price at the rate of Rs392 per unit.

In addition, the company also claimed another revenue shortfall of about Rs15bn on account of losses in the supply of Regasified Liquefied Natural Gas (RLNG) during the next fiscal year.

Therefore, it also demanded an increase of Rs32.62 per unit additional prescribed prices to meet the requirements of RLNG supplies.

The government has already increased consumer gas prices by up to 124pc to meet about Rs310bn revenue shortfall of two gas companies during the current fiscal year.

Based on prescribed prices approved by Ogra, the government has to pass on its impact to various consumer categories while keeping in mind its sociopolitical priorities. The consumer-end gas prices are required under the law to be revised twice a year.

Published in Dawn, March 3rd, 2023