LAHORE: The proposed average prescribed price for FY 2025-26 is Rs 2,485.72 per MMBTU. Approximately 51 percent of the increase is attributable to the diversion of costly Re-gasified Liquefied Natural Gas (RLNG) to system gas consumers.
This diversion has primarily resulted from reduction in power off-take of committed RLNG volumes. Decline in consumption by Captive Power Plants (CPPs), has also led to increased diversion since CPPs are being shifted to Power Grid under the Policy to enhance Power Capacity Utilisation
A further 39 percent of the increase arises from the accrual of Late Payment Surcharge (LPS) against gas creditors (circular debt) which OGRA has historically disallowed for inclusion in the prescribed price.
It is highlighted that operating cost is only around 4-6% of the total revenue requirements of the company.
According to the press release issued by media affairs department of Sui Northern Gas the remaining minimal portion of price escalation consists of operating expenses, addition of essential assets, and depreciation—all of which are critical for sustaining operational viability and ensuring the continuous and reliable supply of gas.
Copyright Business Recorder, 2025
Comments