LAHORE: The Oil and Gas Regulatory Authority (Ogra) is all set to hold a public hearing in Lahore today (Monday) on a petition by Sui Northern Gas Pipelines Limited (SNGPL) seeking another 147 per cent increase in gas tariffs.
As the company has requested an increase of Rs2,646 per mmBtu with a request to fix the new price at an average rate of Rs4,446.89 per mmBtu, it estimates a revenue shortfall of over Rs189 billion. After conducting the public hearing in Lahore today, the authority is also scheduled to hold another hearing in Peshawar on Wednesday (March 27).
“Ogra is conducting a public hearing in Lahore on March 25, 2024, on the petition of Sui Northern Gas Pipelines Limited for the determination of its estimated revenue requirements/prescribed prices for FY2024-25. The petitioner (SNGPL) has projected an average prescribed price of Rs4,446.89 per mmBtu including previous years’ shortfall, in natural gas business FY2024-25,” reads a press release issued by the authority on Sunday.
It mentions that the petitioner has claimed RLNG cost of service at Rs325.08 per mmBtu for FY25. Ogra is also conducting a public hearing in Peshawar on March 27, 2024, to provide ample opportunity for stakeholders, consumers, and the general public to voice their grievances. Further, all categories of gas consumers have been invited through their monthly gas bills to participate in the public hearings. “Ogra shall pass the decision after conducting public hearings,” the release added.
According to SNGPL, it revised its petition based on the revision in the indigenous gas consumer sale price with effect from Feb 1, 2024, notified by Ogra.
Company seeks Rs2,646 per mmBtu raise; another public hearing in Peshawar on 27th
“Our project for FY2024-25 reflects an increase of Rs2,646.19 per mmBtu, including previous years’ shortfall (Rs475.95 per mmBtu), in the prescribed prices of the system gas business and Rs325.08 per mmBtu as the cost of supply for the RLNG business for FY2024-25,” reads the petition.
It is worth mentioning that the federal cabinet had approved a 67pc increase, effective from Feb 1, in the natural gas tariff in the first week of February, apparently to meet the revenue requirements of the gas utilities targeted for the current year.
Following the approval, the Petroleum Division issued a notification, according to which, for consumers using up to 0.25 hundred cubic metres (hcm), the new tariff is Rs200 per mmBtu, representing a 66pc increase. For consumers using up to 0.5hcm, the new rate is Rs250/mmBtu, a 67pc rise.
Similarly, in November last year, Ogra formally notified an increase in gas rates and fixed charges for all consumers throughout the country, effective from Nov 1. Under this notification, fixed monthly charges for residential “protected category” consumers were increased from Rs10 to Rs400, showing an increase of 3,900pc. Additionally, they were also made liable to pay minimum charges of Rs108 per month.
On the other hand, the public at large has rejected the newly proposed gas prices, terming it a great injustice to the poor, and lower-middle and middle classes, already battling with the worst inflation in the country.
“We will never accept the new tariff, as it seems like a move to crush the poor forever. Enough is enough, as we will resist this move by all means,” a consumer told Dawn.
Published in Dawn, March 25th, 2024
