Pakistan

Gas companies demand big price hike, submit applications to OGRA

Published by
Digital Desk

ISLAMABAD: Pakistan’s two state-owned gas companies, Sui Northern and Sui Southern Gas Company Limited, have sought a significant increase in fixed gas prices for the fiscal year 2025-26.

Both companies have submitted applications to OGRA to cover a combined deficit of over Rs77 billion.

In the applications submitted to OGRA, Sui Northern has recommended an increase of Rs189 per MMBTU, which will take its average fixed price to Rs1,955.50 per MMBTU, which is currently Rs1,766.50.

The company has estimated a revenue deficit of Rs 52.95 billion for the fiscal year 2025-26, the reasons for which include the increasing cost of imported RLNG, operating expenses, and depreciation.

On the other hand, Sui Southern has requested an increase of Rs 125.41 per MMBTU. Accordingly, the average fixed price will be increased to Rs 1,783.96 per MMBTU, which is currently Rs 1,658.55.

The company has mentioned a deficit of Rs 24.04 billion, and the reasons for this include the increasing cost of gas procurement, financial expenses, and depreciation.

The request also includes an uncollected deficit of Rs 34.24 billion from previous years, after which the total average fixed price reaches Rs 1,962.55 per MMBTU.

 

Digital Desk

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