Lahore( The COW News Digital) The Sui Northern Gas Pipelines Limited (SNGPL) has formally requested an increase in gas prices, seeking an additional Rs291 per MMBTU, during a public hearing held by the Oil and Gas Regulatory Authority (OGRA).
The hearing, chaired by OGRA Chairman Masroor Khan, was marked by heated debate between stakeholders. SNGPL officials argued that the price hike was essential to cover growing transportation and operational costs. However, industrial consumers strongly opposed the proposal, warning that higher gas prices would add pressure on businesses already struggling with inflation and reduced competitiveness.
During the proceedings, consumers and industry representatives criticized the gas utility’s demand, accusing it of burdening households and industries instead of improving efficiency. They urged the regulator to reject the proposal, stressing that the cost of living and production was already at an unsustainable level.
Chairman OGRA, responding to concerns, assured participants that the regulator was committed to protecting consumer interests. He highlighted that OGRA had already tightened benchmarks for gas companies and introduced stricter measures to ensure accountability.
Masroor Khan revealed that OGRA recently disallowed Rs57 billion in revenue claims by the Sui Southern Gas Company (SSGC) and rejected a total of Rs141 billion in revenue requirements across both SNGPL and SSGC. “We are working to keep gas prices under control while addressing the financial deficits of the companies,” he stated.
The issue reflects the broader challenge faced by Pakistan’s energy sector, where rising global fuel costs, inefficiencies, and circular debt have left gas companies struggling to balance revenues and expenditures. While utilities continue to push for higher tariffs, regulators are under mounting pressure to shield consumers from further financial strain.
For ordinary households, a potential price hike would mean higher monthly bills at a time when inflation has already eroded purchasing power. For industries, particularly in the textile and manufacturing sectors, the increase could further weaken export competitiveness and dampen economic growth.
The final decision on SNGPL’s request will rest with OGRA after reviewing all submissions. The regulator has pledged to strike a balance between the financial health of gas companies and the need to protect consumers from unsustainable increases.
