Islamabad - Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) have sought 14 to 220 per cent increase in its prescribed prices effective from July 01, 2021.
In its petition, Sui Northern Gas Pipeline Limited (SNGPL) has requested Oil and Gas Regulatory Authority (OGRA) to increase its prescribed prices by around 220 per cent or 1415. 91 per MMBTU for Fiscal Year 2021-22. Similarly, the Sui Southern Gas Company (SSGC) has also demanded 14.099 per cent or Rs 109.78 per MMBTU increase in its prescribed prices.
In its revised petitions for the Estimated Revenue Requirements/prescribed prices for FY 2021-22 both the Sui Companies have demanded increase in prescribed gas prices and the transfer the burden of RLNG diverted to domestic consumers.
In its petition, SNGPL has projected an increase of Rs 1415.91 per MMBTU including previous years’ shortfall in Rs 669.75 per MMBTU in FY 2021-22. Similarly, SNGPL has demanded another Rs 137.47 per MMBTU w.e.f July 01, 2021 as cost of Service for RLNG business for FY 2021-22.
If the increase demanded is given approval, an additional amount of Rs 325.307 billion will be charged from the consumers in the Punjab and Khyber Pakhtunkhwa. Similarly, in case of approval of SSGC, the gas consumers in Sindh and Balochistan will have to pay an additional 34.994 billion during next fiscal.
As per the petition of SNGPL, the total estimated revenue requirement is Rs 283.099 billion for 2021-22, while the sales revenue at current prescribed price is Rs 211.900 billion. The total shortfall in revenue requirement is Rs 71.199 billion. The previous year revenue shortfall is Rs 254.108 billion. The company has demanded an increase of Rs 857.40 per MMBTU in revenue requirement w.e.f July 01, 2021. For previous years’ shortfall, the company has Rs 669.75 per MMBTU in FY 2021-22.
The SNGPL has projected Rs 42.093 billion for laying 11500 km distribution main to connect various new town and villages in its service areas of Punjab and KP.
The Sui Southern Gas Company (SSGC) has demanded an increase of Rs 109.78 per MMBTU in revenue requirement w.e.f 1st July, 2021.SSGC has also demanded Rs 16.715 billion or Rs 43.38 per MMBTU as RLNG cost of Service for FY 2021-22.
Likewise SSGC in its petition has projected that the total revenue requirement of the company for FY 2021-22 is Rs 251.596 billion against the sale revenue of Rs 216.602 billion at current prescribed prices.The company has a total shortfall of Rs 34.994 billion in its revenue requirement and has demanded an increase of Rs 109.78 per MMBTU to meet its revenue requirement for the next fiscal.
The current prescribed price of SNGPL is Rs 644.84 per MMBTU, while for SSGC it is Rs 778.59 per MMBTU.
Ogra has sought comments from the stakeholders within the next 14 days. Ogra will conduct Public hearing on the petitions, and will make a final decision regarding prescribed prices.