The Sui Northern Gas Company has submitted a proposal to the Oil and Gas Regulatory Authority (OGRA) requesting a price hike of Rs 64 per MMBTU for gas.
According to the proposal, Sui Northern is facing a deficit of Rs 20.582 billion in the current financial year, which includes an allocation of Rs 489 million for the LPG AirMix project.
Additionally, Sui Northern is required to pay significant sums for the transfer of Reversed Liquefied Natural Gas (RLNG) to domestic consumers.
These proposed gas prices are tied to the costs of High-Speed Fuel Oil (HSFO) and crude oil. The company has also requested an increase in the LNG supply rate across all consumer categories to Rs 1711.73 per MMBTU, effective from July 1, 2024.
If approved, this request would likely lead to higher gas prices for domestic consumers.
Meanwhile, the Sindh High Court recently upheld an interim order preventing the Sui Southern Gas Company (SSGC) from taking unauthorized actions against consumers regarding increased gas bills and meter charges.
A two-member bench, led by Chief Justice Muhammad Shafiq Siddiqui, reviewed the petition challenging the rise in gas bills and meter charges.
Advocate Tariq Mansoor argued that the SSGC had restructured gas bills, creating protected and non-protected consumer categories.
He claimed that SSGC had unlawfully set a meter rental fee at Rs 460, to be charged in winter but extended to other months.
The additional Rs 460 fee per consumer is seen as unfair, as it has resulted in over Rs 11 billion being collected from Karachi alone.
