The Oil and Gas Regulatory Authority (Ogra) is convening a public hearing today (Monday) in Lahore to discuss the proposed increase in gas tariffs, marking the third such event in the current fiscal year. This follows Sui Northern’s request for a substantial 147% hike.
The next hearing, scheduled for Wednesday (March 27) in Peshawar, will further deliberate on Sui Northern’s plea for a significant increase of Rs2,646.18 per mmbtu, aiming to establish a new average price of Rs 4446.89. Sui Northern argues that this adjustment is necessary due to an estimated revenue shortfall of Rs189.18 billion.
If approved, the gas price increase will affect consumers in Punjab, Khyber Pakhtunkhwa, and Islamabad, with implementation slated for July 1.
However, the Lahore Chamber of Commerce and Industry (LCCI) and the All Pakistan Textile Mills Association (APTMA) have strongly opposed the plan, denouncing it as a cruel measure. LCCI Vice President Adnan Butt highlights that gas prices in Pakistan are already significantly higher than global standards and warns that further increases could lead to factory closures.
Similarly, APTMA advocates for a reduction in gas and electricity prices, emphasizing the need to scrutinize Sui Northern’s performance.
Last week, Ogra conducted similar public hearings in Karachi and Quetta in response to a request from Sui Southern for an increase of Rs 324.3 per mmbtu. The proposed new average price of Rs 1740.80 per mmbtu could burden consumers by Rs79.63 billion. Sui Southern cites a total revenue shortfall of Rs79.63 billion for the next financial year, with significant amounts attributed to locally produced gas and imported RLNG.
Following the hearings, Ogra will submit its final decision to the federal government. If approved by Islamabad, Ogra will issue a notification to implement the gas price hike.
