Gas consumers in Pakistan are gearing up for a potential spike in gas tariffs as Sui Northern Gas Pipelines Limited (SNGPL) has submitted a request to the Oil and Gas Regulatory Authority (OGRA) seeking a substantial 137.62% increase.
Following recent electricity price hikes, this move, set to take effect from July 1, 2023, will further strain consumers’ budgets, with a proposed increase of Rs 1,715 per mmbtu.
SNGPL’s request is driven by a projected shortfall of Rs 181.51 billion for the fiscal year 2023-24. The company aims to raise the gas price to Rs 2961.98 per mmbtu, a significant surge from the current rate of Rs 1246.49 per mmbtu.
The detailed application outlines a specific increase of Rs 1209.14 per mmbtu for arrears and an additional hike of Rs 56.48 per mmbtu attributed to rupee depreciation. OGRA is set to conduct a hearing on December 11 to assess and deliberate on the proposed price increase in response to SNGPL’s application.
Government Assigns Rs19.35 Billion For Power Sector Projects
Meanwhile, in the current fiscal year 2023-24, the government has disbursed Rs19.35 billion for various power sector projects within the National Transmission and Dispatch Company (NTDC) and Pakistan Electric Power Company (PEPCO). The allocation is part of the annual Public Sector Development Programme (PSDP), where a total of Rs55.29 billion is earmarked for NTDC/PEPCO initiatives in the fiscal year.
The breakdown of the released funds indicates a local component of Rs10.37 billion, complemented by a foreign aid component of Rs8.97 billion. Additionally, Rs2.25 billion has been expended on diverse water-related projects during this period.
The ongoing schemes benefiting from this allocation encompass significant projects, including the installation of a 2×600 MW coal-fired power project in GENCO-1 Jamshoro, interconnection of the isolated Makran Network, and the establishment of substations in Hairpur and Swabi.
