SNGPL Seeks 144pc Raise in Gas Prices

gas prices

According to sources, the Sui Northern Gas Pipeline Limited (SNGPL) and the Sui Sothern Gas Company (SSGC) forwarded appeals to the oil and regulatory authority in order to increase the gas prices from the 1st of July 2019, that is Monday.

The Sui Northern Gas Pipelines Limited, the provider of Punjab and Khyber Pakhtunkhwa, has looked for an increase of 144percent in the gas prices. On the other hand, Sui Sothern Gas Company, serving Baluchistan and Sindh, has sought 18percent of increase per MMBtu.

OGRA is considering and discussing the petitions aroused by the SNGPL and SSGCL and is appraising the petroleum division. The federal government is responsible to take the final decision in increasing the gas prices.

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Nadeem Babar, the head of PM Imran khan’s task force on energy reforms, informed that the government is planning to offer concessions on a dozen gas field coming year to fulfill the shortage of fuel.

In January 2019, PM Imran Khan ordered for the removal of the MD’S of SSGC and SNGPL from their posts because of the gas problems in the nation.

As per the annual report of the Petroleum Ministry, the domestic gas yield of Pakistan has plateaued in the span of last 5 years, reducing to 1.48trillion cubic feet in 2017/18 from 1.51trillion cubic feet in 2012/2013.

This was the major reason for gas shortages as the population of Pakistan has now reached 208million, thus making the fuel demand from industries and new power plants much higher.

As per OGRA, the gas demand was approximated at 6.9billion cubic feet per day for 2017/18, which was nearly 3billion cubic feet more than the per day yield.

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