Lahore:
On Friday, the SUN Northern Gas Pipelines Limited (SNGPL) required an increase in gas prices and asked the Authority for Petroleum and Gas Gase (OGRA) to raise the prohibition of new connections with national consumers.
The hearing led these requests to the SNGPL siege, President Ogra Masroor Khan on the president. During the hearing, the SNGPL requested an increase of RS735 per million of British thermal units (MMBTU).
Public service has also said that interior liquefied natural gas connections (RLNG) regassified should be authorized immediately because a prohibition of them reduced its income. He argued that the price of gas should be increased, so that spending on expansion projects have been completed.
Representatives of commercial, industrial and national consumers have firmly opposed the increase in prices. They argued that people were already overwhelmed, adding that many commercial consumers had disconnected their gas connections. Hotels and textile sectors have also opposed the price hiking.
The SNGPL, while explaining the reasons for the rise in prices, said that the average fixed price offered for the financial year 2025-2026 was set at RS2 485.72 per MMBTU, adding that 51% of the price increase was intended to provide costly RLNG gas to system gas consumers.
He added that 39% of the price increase concerned the late payment overload (LPS) applied to the contributions of the gas sector, that is to say the circular debt. The SNGPL said that the share of operating expenses in total income requirements of the company was only 4 to 6%.
