Industry objects to SSGC’s plea for price hike at Ogra hearing

The business community has appeared sceptical about the petition filed by the Sui Southern Gas Company Ltd (SSGCL) to the Oil and Gas Regulatory Authority (Ogra) seeking an increase of Rs667.44 per mmBtu in its prescribed prices for FY23. Businessmen said that industries should not be overburdened and gas price hikes should be applied to fertiliser, commercial and domestic sectors as well. The SSGCL has sought an increase in gas prices by projecting a revenue shortfall of Rs184.88 billion in the next fiscal, apart from Rs26.23 per mmBtu in terms of RLNG service cost. A public hearing was held by Ogra on Monday to review SSGCL’s petition to consider comments from the relevant stakeholders before taking any formal decision. The gas company informed the regulator that it faced a revenue shortfall of Rs33.78bn that was not reimbursed by the government pending since the end of 2021-22.