ISLAMABAD, April 2: The Sui Northern Gas Pipeline Limited (SNGPL) has asked the Oil and Gas Regulatory Authority (Ogra) to authorise a further increase in gas prices. The authority will hold a public hearing in Islamabad on April 25 to consider an SNGPL request for an increase in gas tariff rates during the next fiscal year.

An Ogra official told Online that the SNGPL had filed an application with the authority for determination of its estimated revenue requirement for the 2006-07 fiscal year and sought an increase in its prescribed price by Rs14 MMBTU from July 1, for meeting the shortfall of Rs8,622 in its revenue requirements.

He said the company had claimed that the demand for increase in the prescribed price was due to an anticipated increase in the purchase cost of gas from producers, which is linked to the crude oil and fuel oil prices in the international market.

He said that Ogra had admitted the application and invited all stakeholders to participate in the proceedings of the petition.

The authority is empowered to determine annually the revenue requirements of the gas utilities on the basis of the prescribed rate of return, taking into account the cost of gas, prudent capital investment and O & M cost and depreciation.—Online