The Sui-Northern Gas Pipelines (SNGPL) and Sui-Southern Gas Company (SSGC) have filed a petition with the Oil and Gas Regulatory Authority (Ogra), seeking increase in gas tariff up to Rs 54 per mmbtu for second half of the current financial year.
According to an Ogra official, SNGPL has requested for an increase of gas tariff by Rs 54.42 per mmbtu, and SSGC for an increase of Rs 21.95 per mmbtu for the second half of the current financial year, starting from January 1, 2012. Both gas utilities have based their plea on the fact that they are facing severe revenue shortfall. SNGPL is facing shortfall of Rs 30.4 billion, and SSGC says it is facing shortfall of Rs 8.36 billion.
According to Ogra officials, Pakistan is facing gas shortage of 1.5 to 2 billion cubic feet (BCF) which, during the coming winter, would reach 3 BCF. The government on September 21 had allowed both gas supplying companies to increase gas tariff by Rs 12.64 per mmbtu for SSGC and Rs 5.46 per mmbtu for SNGPL. The SNGPL has shown a shortfall in revenue of Rs 8.4 billion and SSGC's final revenue shortfall is Rs 6.25 billion. These two public entities have spent hefty amounts on advertisements, travelling expenditures, and legal expenditures, and suffered losses to their infrastructure due to the 2010 and 2011 floods.
Comments
Comments are closed for this article.