SSGC seeks further hike in gas price
A month after the caretakers burdened the masses with gas price hike on the International Monetary Fund’s (IMF) demand, the Sui Southern Gas Company (SSGC) has requested the fuel regulator — the Oil and Gas Regulatory Authority (Ogra) — to further increase gas prices from July 2024.
The caretaker government had approved a 67% increase in the natural gas tariff with effect from February 1. The tariff was hiked to meet the deadline of the IMF for hiking the gas prices under structural benchmark criteria till February 15, 2024.
In its fresh plea filed with the Ogra, the SSGC requested the fuel regulator to increase in the gas price by Rs274.40 per Metric Million British Thermal Unit (mmbtu).
Citing an estimated Rs79.63 billion revenue shortfall, the SSGC urged Ogra to set average price of one mmbtu gas at Rs1740.80.
A public hearing on the petition is scheduled on March 18 in Karachi, during which the regulatory authority will determine the gas prices. The Ogra will also hear the petition in Quetta on March 20.
It is pertinent to mention here that the IMF wants the government to implement the gas review implementation biannually to reduce the circular debt.
