ISLAMABAD - Sui Northern Gas Pipelines Ltd and Sui Southern Gas Company Ltd have sought whopping hike in tariff up to Rs 13.16/mmbtu with effect from July for the financial year 2012-13 from Oil and Gas Regulatory Authority.

Both gas utilities in their bid to collect hefty Rs 29 billion from the consumers have submitted their applications to the regulatory authority.

Applications of Sui Northern Gas Company Limited and Sui Northern Gas Company Limited to the Oil and Gas Regulatory Authority for its nod are enough to the dismay of inflation stricken masses as SNGPL in its plea has asked increase of Rs 13.16/mmbtu while SSGCL has sought raise of Rs 8.87/mmbtu.

It is also learnt that despite passing on seven per cent unaccounted for gas (UFG) to the consumers, SNGPL will face a gigantic loss of Rs 6.4 billion and will also bear a heavy loss of Rs 5.7 billion over LPG Air Mix plant.

However, it has asked the authority to pass on this very loss to the consumers.  SNGPL with this increase in tariff will generate heavy revenue worth Rs 7 billion and 67 crore.

So the total earnings of the company will in total revolve around Rs 264 billion as it will sell gas worth Rs 214 billion.

In this way total expenditures of SNGPL will stand at Rs 259 billion. However, with this required surge in tariff, SNGPL will earn revenue worth Rs 3 billion, 29 crore and 30 lakh.

Besides this, SSGCL will sale out the gas worth Rs156 billion.

It will earn revenue of Rs 2 billion and 17 crore from the transportation of imported Liquefied Natural Gas (LNG) and from Jamshoro Joint Venture Limited (JJVL), the company will earn revenue worth Rs 2 billion and 17 crore.

Similarly, SSGCL will earn revenue of Rs 2 billion, 7crore and 70 lakh from other sources.

In this way, SSGCL will earn revenue worth Rs 162 billion. Further, over the sale of gas, a total Rs 131 billion will be the cost.

However, owing to more than 7 per cent UfG, the company will suffer a loss of Rs 1 billion and 38 crore. Again, the cost of transmission and distribution to the SSGCL will be at Rs 11 billion and 2 crore.

Furthermore, Rs 24 crore and 80 lakh will also be required for Liquefied Petroleum Gas (LPG) Air Mix projects. Sources have informed that if OGRA gives a 2.5 per cent reduction in UfG then both SNGPL and SSGCL in their bid to generate revenue will not have to make the gas more expensive.

It is relevant to mention that OGRA will commence hearing over their applications during the last week of next month in Lahore and Karachi.

Both Sui Northern Gas Company Limited and Sui Southern Gas Company Limited have sought this gigantic increase in the tariff for the financial year 2012-13.