ISLAMABAD-The gas consumers should be ready for another hike in gas tariff as the Sui companies have sought the Oil and Gas Regulatory Authority (OGRA) nod for increase of upto Rs 730 per Million British Thermal Unit (MMBTU) in their average prescribed prices to meet their revenue shortfall of financial year (FY) 2023-24. In separate petitions submitted to Oil and Gas Regulatory Authority (Ogra), Sui Northern Gas Pipelines Limited (SNGPL) has sought hike of Rs 730.39/MMBTU in tariff, while Sui Southern Gas Company Limited (SSGC) sought Rs 391.69/MMBTU increase in gas price effective from July 1, 2023.
SNGPL and SSGC, in separate petitions, have sought massive price hike for determination of their estimated revenue requirement/prescribed prices for the next financial year. According to the SSGC petition, the estimated revenue requirement for FY 2023-24 has been worked at a shortfall of Rs. 98,310 million or Rs. 391.69 per MMBTU for indigenous gas business (including a subsidy of LPG Airmix amounting to Rs. 2,807 million or Rs. 11.19 per MMBTU) and a shortfall of Rs. 15,076 million or Rs. 32.62 per MMBTU for RLNG business which may be allowed in SSGC prescribed price effective 1st July 2023. SSGC has projected average prescribed price of Rs. 1,060.12 per MMBTU for FY 2023-24 in natural gas business activity-wise shortfall in respect of revenue requirement of indigenous gas. In a footnote, the company has said that upward adjustment of Rs 391.69 per MMBTU for FY 2022-23 has been re-worked at Rs 738.96 per MMBTU with the consideration that effect of price adjustment should not be passed on to domestic, special commercial (roti tandoors) customers and feed stock of fertilizer industry. However, OGRA & GOP are authorized to rework these numbers according to their policies and as per the provisions of Section 8 of OGRA Ordinance, 2002.
Tessori vows to continue consultations with stakeholders for economic stability
Regarding the Un-accounted For Gas (UFG), the company said that UFG for indigenous gas has been projected at 13.13% i.e., 39,964 MMCF versus benchmark of 6.30%. Similarly, SNGPL projected revenue requirement of Rs431 billion for the fiscal year 2023-24 and filed a petition before the Authority on December 30, 2022 and subsequent amended on February 10, 2023 under Section 8 (1) of the Oil and Gas Regulatory Authority Ordinance, 2002, read with Rule 4 (2) of the Natural Gas Tariff Rules, 2002, for determination of its estimated revenue requirements / prescribed prices for FY 2023-24. The petitioner has projected average prescribed price at Rs. 2,827.49 per MMBTU including previous years’ shortfall for FY 2023-24 for indigenous business. As per the SNGPL petition, the proposed average prescribed price for the FY2023-24 is Rs 1229.46/ MMBTU, while the previous year revenue shortfall of Rs 1598.02/MMBTU. The aggregate average prescribed price with effect from July 1, 2023, including the previous year shortfall the projected tariff is Rs 2827.49/MMBTU. SNGPL has claimed RLNG cost of service at Rs. 222.36/MMBTU for FY2023-24. The petitioner has also demanded additional amount Rs. 710.82 per MMBTU under RLNG cost of service on account of differential impact of RLNG diversion to domestic sector. As advised by the Ministry of Energy in a recent meeting held in the Petroleum Division, the petitioner has also provided partial and full WACOG scenario of revenue requirement for FY 2023-24, along with the instant petition claim. It is worth mentioning here that the government has already jacked up gas prices by 112% from January 1, 2023. OGRA will conduct one public hearing on the petition of SNGPL on March 20, 2023, in Lahore, and then two for SSGC; the first one will be held on March 13, 2023, in Karachi and then on March 17, 2023, in Quetta.
Shahida Raza sacrifices her life in Italy shipwreck to save son's health
The Nation, 03 Mar, 2023