Gas price hike petition of SSGC: Ogra holds public hearing, reserves verdict

KARACHI: The Oil and Gas Regulatory Authority (OGRA) on Monday held a public hearing to seek comments from all stakeholders on Sui Southern Gas Company’s (SSGC) petition seeking increase of Rs.58.42 per mmbtu in gas price effective July 01, 2021.

Public hearing was chaired by Chairman OGRA Masroor Khan while member oil and member gas were also present. The SSGC projected a shortfall in revenue requirement of Rs.18,399 million for FY 2021-22 and sought increase in its average prescribed price by 58.42 per mmbtu effective July 01, 2021. The SSGC also estimated RLNG cost of services at Rs 30.48 per mmbtu.

The representative of All Pakistan Textile Mills Association (APTMA) Raziuddin, representative of Karachi Chamber of Commerce and Industry Zubair Motiwala and Ghias Paracha from CNG sector opposed any increase in the gas tariff.

Raiazuddin said how can SSGC estimated for revision in tariff for whole financial year by making calculations on only two months. He asked whether this model is based on economic theory or on political grounds.

Ghias Paracha said that the CNG sector pays highest price of gas and there is no reason to disconnect gas to CNG sector for two and half months. He said CNG sector is being discriminated in gas supply.

Zubair Motiwala opposing the petition of SSGC for raised in the price of gas said that export industry in Sindh is being discriminated in terms of gas rates as tariff offered to export-oriented sector in north has not been offered by SSGC in Sindh.

He said Sindh is being deprived from its due share in gas when the gas from south has been diverted to north, which according to him has been estimated at 180mmcf. OGRA under section 8(2) of the OGRA Ordinance, 2002 read with Rule 4(3) of Natural Tariff Rules, 2002 held this public hearing and reserved their decision which would be passed in due course of time.

Copyright Business Recorder, 2021