In order to make up for a Rs. 98 billion income shortfall, the Sui Southern Gas Company Limited (SSGC) has requested an increase of Rs. 392 per million British thermal units (MMBTU) in its prescribed pricing for the current fiscal year 2023–24 (FY24).
In this regard, the Oil and Gas Regulatory Authority (OGRA) held a public hearing on Thursday to gather opinions and comments from stakeholders, consumers, and members of the general public on the review petition submitted by SSGC, as well as to review its projected revenue needs and set prices for FY24.
During the current fiscal year 2023–2024 (FY24), the Sui Southern Gas Company Limited (SSGC) has asked for a rise of Rs. 392 per million British thermal units (MMBTU) in its prescribed pricing to make up for a Rs. 98 billion revenue shortfall.
In this context, the Oil and Gas Regulatory Authority (OGRA) held a public hearing on Thursday to gather feedback and opinions from customers, members of the general public, and stakeholders on the review petition submitted by SSGC and to examine its anticipated revenue needs and set pricing for FY24.
In its petition, SSGC estimated a shortfall in income of Rs. 266 billion, including Rs. 25 billion for an unrecouped shortfall for RLNG (Regasified Liquefied Natural Gas), and requested an extra increase of Rs. 32.62 per unit in its prescribed pricing to cover RLNG supply needs for FY24.
The government has already raised consumer gas prices in the current fiscal year by up to 124 percent in order to recoup Rs 310 billion from two gas companies. The government is required to transfer the impact to various consumer categories based on OGRA-approved prices while keeping in mind its sociopolitical priorities. Relevantly, the law mandates that gas prices at the consumer level be updated twice a year.