The two major gas utilities in Pakistan, Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), have requested substantial increases in gas prices to address their revenue requirements for the fiscal year 2024-25 (FY25). The proposed hikes could see prices rise by up to 54 percent.

Gas prices in Pakistan are revised biannually based on determinations by the Oil & Gas Regulatory Authority (Ogra), which informs the government’s setting of consumer prices across various categories. Ogra has scheduled public hearings to consider these requests, with SSGCL’s hearing set for November 8, where the company is seeking an increase of Rs669 per unit (mmBtu), or 53.5 percent.

SNGPL’s hearing is scheduled for November 5, with a requested hike of 3.66 percent, or Rs64.16 per mmBtu.

SNGPL, which filed its petition on October 15 and amended it on October 18, projects a revenue shortfall of Rs20.582 billion for FY25. This includes Rs489 million related to the LPG Air Mix Project. The company is seeking to raise its average prescribed price from Rs1,746.22 to Rs1,810.38 per mmBtu.

SNGPL has incorporated the cost of RLNG-diverted volumes to indigenous gas consumers, following a decision by the Economic Coordination Committee (ECC) ratified by the federal cabinet on October 30, 2023. The cost of gas is linked to international prices of HSFO and crude oil/Brent, as per agreements with gas producers and suppliers.

Meanwhile, SSGCL has projected a revenue shortfall of Rs140 billion for FY25 and is seeking to increase its average prescribed price from Rs1,251.32 to Rs1,920.39 per mmBtu, effective from July 1, 2024. The Karachi-based utility has also claimed Rs643 billion (Rs3,073.91/mmBtu) related to previous years’ un-recouped shortfalls. Additionally, SSGCL has estimated the RLNG cost of service at Rs46.13 per mmBtu for FY25.