What You Need to Know About the SSGC’s Gas Price Increase Plan
Key Points:
- SSGC’s Request: They’ve asked Ogra to let them increase gas prices, starting July 1, 2024.
- Proposed Increase: SSGC wants to raise prices by Rs324 per MMBtu, aiming for an average of Rs. 1740.80 per MMBtu.
- Financial Need: SSGC says they’re facing an Rs79.63 billion shortfall and need the extra money.
- Shortfall Breakdown: They predict a deficit of Rs56.69 billion from local sales, Rs22 billion from buying gas abroad, and Rs935 million for maintenance.
- Ogra Hearings: Ogra will discuss SSGC’s request in meetings on March 18 in Karachi and March 20 in Quetta.
- Previous Increases: Gas prices have already gone up twice this year: by 200% on November 1, 2023, and by 67% on February 1, 2024.
- Cumulative Impact: These increases have added around Rs. 643 billion to gas users’ bills.
The Sui Southern Gas Company (SSGC) wants to raise gas prices, and they’ve asked for permission from the Oil and Gas Regulatory Authority (Ogra). If they get the green light, your gas bill could go up by quite a bit, starting from July 1, 2024.
How Much Prices Might Go Up
SSGC is suggesting a big increase in gas prices – about Rs324 more for every million British thermal units (mmbtu). That’s like saying they want to set a new average price of Rs. 1740.80 for each mmbtu. If Ogra agrees, it could mean an extra bill of Rs79.63 billion for everyone using gas in the country.
Why They’re Asking for More Money
The main reason SSGC wants to hike up prices is that they think they won’t make enough money in the coming year. They say they’re expecting to be short by Rs. 79.63 billion, and they’ve broken down where they think they’ll lose out:
Where They’re Losing Money
- Sales in Pakistan: They reckon they’ll lose about Rs56.69 billion from sales within Pakistan.
- Buying Gas from Abroad: They also expect to be down by Rs22 billion because of buying gas from other countries.
- Maintenance Costs: On top of that, they think they’ll be short by Rs 935 million for maintenance.
What’s Happening Next
Ogra is going to have meetings to talk about SSGC’s request. The first one will be in Karachi on March 18, and then there’s another in Quetta on March 20. This comes after they’ve already increased gas prices a couple of times this year:
Previous Price Increases
- November 1, 2023: They made prices go up a lot – by 200%!
- February 1, 2024: Just a few months later, they increased prices by 67%.
With all these increases combined, gas users have had to pay around Rs. 643 billion more altogether.
Wrap Up
SSGC’s plan to raise gas prices could mean bigger bills for you and everyone else. As Ogra looks into it, we’ll keep you updated on what happens next.
