ISLAMABAD (Ehsan Bukhari – Special Reporter)
As winter approaches, Pakistan’s major gas utilities have submitted requests to the Oil and Gas Regulatory Authority (OGRA) seeking a sharp increase in gas tariffs and recovery of outstanding dues, amounting to over Rs25 billion from consumers.
According to official sources, the Sui Northern Gas Pipelines Limited (SNGPL) has sought a 62.28% increase in gas tariffs for Punjab, Khyber Pakhtunkhwa, and Islamabad, while the Sui Southern Gas Company Limited (SSGCL) has requested an overall 22% hike for Sindh and Balochistan, which includes recovery of last year’s arrears.
OGRA has scheduled separate public hearings on these petitions — SNGPL’s application will be heard on November 7, and SSGCL’s on November 11.
SNGPL has asked for an average increase of Rs189 per MMBTU, along with an additional Rs316.64 per MMBTU under the head of LNG service cost. Meanwhile, both gas companies have sought permission to recover over Rs25 billion from consumers, citing operational losses and system inefficiencies.
Sources revealed that OGRA currently allows gas companies a 7% margin, while approximately 12% of the gas lost through theft and leakages is also indirectly passed on to consumers in the form of higher tariffs.
When CapitalNewsPoint contacted, OGRA spokesperson Imran Ghaznavi confirmed that gas companies submit tariff revision requests twice a year, adding that the upcoming hearings will determine the extent of any approved price adjustments.
If approved, the proposed tariff hikes could significantly increase the financial burden on households already struggling with rising energy costs this winter.