ISLAMABAD - The successive governments have imposed an additional burden of Rs1 trillion to the gas consumers over the past two years. The PDM-led coalition government, and caretaker government had upward revised the gas tariff four times in less than two years (since January 2023), official data reveals.
In January 2023, the PDM-led coalition government has allowed both the Sui Northern Gas Pipeline Limited and Sui Southern Gas Company Limited the upward revision in tariff which had resulted the additional burden of Rs310 billion. The caretaker government within a span of around four months, had increased the gas tariff twice and allowed the Sui companies to collect an additional Rs643 billion from the consumers.
In November 2023, the caretaker government had enhanced the gas tariff empowering the Sui companies to charge an additional Rs401 billion from the gas consumers. Again in February 2024, the caretaker government had allowed the collection of Rs242 billion from the gas consumers through another hike in gas tariff. The sitting PML-N government had increased the gas tariff for captive power plants from 1st July 2024; however, there was no change in the tariff of domestic or other consumers.
Both the Sui companies have again sought the nod of Oil and Gas Regulatory Authority (OGRA) for a hike of up to 53.47 percent in average prescribed prices of gas for the FY 2024-25. Sui Northern Gas Pipeline Limited (SNGPL) has sought a hike of 3.66 percent, while Sui Southern has asked for 53.47 percent in the average prescribed price of gas for 2024-25. In two separate review petitions, of the Estimated Revenue Requirements (ERR) 2024-25, filed with OGRA, the SNGPL and SSGCL, have sought a hike of Rs64.16 per MMBTU and Rs669.07 per MMBTU, respectively, in the prescribed prices. The OGRA will conduct public hearing on SNGPL petition today (Tuesday) at the company headquarter Lahore, while on SSGCL petition, it will be held on November 08, at SSGCL headquarter Karachi.