The two main public gas services in Pakistan have submitted requests to considerably increase consumer prices compared to July, invoking projected financial deficits and income requirements for financial year 2025-26.
According to regulatory documents, SUNTHERNN GAS PIPELINES LTD (SNGPL) requested an average increase in RS735,59 per million British thermal units (MMBTU), while SUTHERN GAS COMPANY LTD (SSGC) is looking for an RS2,443 hike by MMBTU, including previous deficits, new expressses.
The SNGPL estimated the total income requirements of 700.97 billion rupees and a deficit of RS207.43 billion. The company has offered a new average consumption price of RS2 485.72 by MMBTU.
SSGC submitted a income requirement of 883.54 billion rupees, with a deficit of 44.33 billion rupees, and asked to fix the average gas rate at 4,137.49 rupees per MMBTU.
The public hearings on requests will be held in Lahore and Peshawar for Sngpl on April 18 and 28, and in Karachi and Quetta for SSGC on April 21 and 23.
The proposed increases arise from inflationary pressures and continuous reforms in the energy sector, while Pakistan strives to reduce circular debt and reach the tax targets of the IMF.
