KARACHI: Sui Southern Gas Company (SSGC), the state-owned gas utility has submitted the petition to Oil and Gas Regulatory Authority (OGRA), seeking increase in gas tariff by Rs58.42 per mmbtu for the fiscal year 2022.
The SSGC is seeking an increase in the gas price to curb its revenue shortfall. OGRA will hold a public hearing on the petition in Karachi on December 06, 2021, a public notice regulatory body stated.
Current average price of SSGC is around Rs779.88 per mmbtu whereas current average prescribed price is Rs838.30 per mmbtu.
The company has also demanded estimated RLNG cost of service at Rs 30.48 per MMBTU for 2021-22.
In the petition, SSGC reported a revenue shortfall of Rs5,789 million or Rs18.16 per mmbtu for natural gas consumers and Rs18,680 million or Rs40.43 per mmbtu for RLNG consumers. Motion for review (MFR) petition had been filed with OGRA on September 15, 2021.
Shortfall claimed in MFR and in line with the changes in cost of gas, a shortfall of Rs18399 million or Rs58.42 per mmbtu for natural gas consumers and Rs30,817 million or Rs60.46 per mmbtu shortfall for RLNG consumers has been worked out in review of estimated revenue requirements for FY21-22.
SSGC requested OGRA to approve an increase in average prescribed price of SSGC effective from July 01, 2021 to compensate for increase in cost of gas on immediate basis.
SSGC, in the petition, stated that cost of gas estimates have been revised considering average crude oil and HSFO C&F prices of $67.51 per barrel and $393.95 per metric ton respectively.
The exchange rate parity has been taken at average of Rs172 per dollar the year, considering the US currency would touch Rs180 by June 2022.
It is worth mentioning that the Sui Northern Gas Pipeline Company had already submitted a review petition for up to 157.5 percent increase (Rs907.75 per MMBTU) in average prescribed gas tariff for FY 2021-22.