ISLAMABAD             -         All Pakistan Textile Mills Association (APTMA) has urged OGRA to reduce all prescribed gas prices and proposed that tariff for export oriented zero rated industries, including its associated power generation plants to be fixed at Rs 450/mmbtu.

Oil and Gas Regulatory Authority has concluded hearing in the petitions of SNGPL and SSGC for more than 100 percent increase in the gas prices for the consumers.

On the second day of hearing on the SSGC petition for Rs85.35 per mmbtu increase in the gas price for the consumers of Sindh and Balochistan, APTMA has pleaded to reduce price for all the sectors.

In its petition Sui Southern Gas Company (SSGC) has requested for increase in gas price by Rs85.35 per mmbtu or 10.72 percent to be effective from July 01 to meet the estimated revenue requirement of financial year 2020-21.

It is worth to mention here that on Wednesday Ogra had conduced hearing on SNGPL petition for more than 100 percent increase in gas prices.

The SNGPL has submitted its revised petition seeking an increase in gas price by Rs 85.35 per mmbtu to Rs881.53 per MMBTU.

The current prescribed gas price of Sui Southern stands at Rs796.18 per mmbtu.

The estimated revenue requirement for year 2020-21 has been worked out at a surplus of Rs 42192 million or Rs 117.26 per mmbtu, however an amount of Rs 72902 million has been added to the revenue requirement being unadjusted shortfall for prior years i.e. upto FY 2017-18(based on un-audited results).

The net shortfall for prior indigenous gas business comes out to Rs 30710 million or Rs 85.35 per mmbtu. SSGC has further pleaded in the petition to add Rs 6.5 billion or 13.64 in the head of RLNG for revenue requirement in RLNG business to be effective from July 1.

Representative of APTMA Sindh-Baluchistan Razi-ud-din pointed out that expenditure of the company gone up Rs 12.6 billion over two years while UFG was reduced just by 0.5 percent from 12.79% to 11.15%.  – a difference of only 0.5%. UFG needs to be 4%.

He said that cost of gas needs to be rationalized as the present rate is unsustainable. Mr Razi also pleaded to freeze ROA of the SSGC to FY 2019-20.He further pointed out that compressor Fuel o the company increased by 65% (551,000 to 913,000 mmbtu).

He said that prescribed prices of the company are not sustainable and requested OGRA to disallow many of adjustments. He proposed an out of Box Solutions and said that regulator may recommend utilization of GIDC to cause reduction in gas prices. Razi-ud-din pleaded that ROA, UFG, Capex, Opex, Wellhead prices are unsustainable and need major downward revision. All Prescribed prices need to be lowered. Export oriented zero rated industries, including its associated power generation plants to be fixed at Rs 450/mmbtu