ISLAMABAD, Feb 4: The Sui Southern Gas Company has sought increase in its prescribed price by an average Rs19.71 per 1000 cubic feet (mcf) for the financial year 2002-03.

The Oil and Gas Regulatory Authority (OGRA) would commence public hearing of the SSGCL petition from Feb 6, whether to grant the proposed increase in prescribed price.

An OGRA statement said here that the SSGCL had filed the petition for increase in its prescribed prices of natural gas to meet the shortfall in revenue requirements for the current fiscal.

Increase in gas price, as per SSGCL request, will be met by making retroactive adjustments in the gas development surcharge (GDS) which is a source of revenue for the federal government.

As a result, the federal government could proportionately increase the consumer price to adjust erosion in its revenue. Under section 8 of the OGRA ordinance the federal government has the power to fix the sale price of gas for consumers which may include the element of GDS, said the OGRA statement.