Company may sink if tariff hike delayed: SSGC

The management of Sui Southern Gas Company (SSGC) has warned that the public gas utility will sink financially if gas prices are not increased at an appropriate time. At a public hearing held by the Oil and Gas Regulatory Authority (Ogra) on Monday, SSGC sought a price increase of Rs274.40 per million British thermal units (mmBtu) effective from July 1, 2024 to meet its revenue requirement of Rs359 billion. The company asked for Rs25 billion on account of return on assets. SSGC managing director said that it was a difficult situation for the company as it was paying for gas purchase in dollars and selling it to consumers in rupees. Owing to that situation, the company’s huge receivables amounting to Rs300 billion had got stuck over the past two years. Payables of the company stood at more than Rs300 billion, SSGC officials said, adding that the outstanding dues were also impacting hydrocarbon search activities of oil and gas exploration companies.