The Oil and Gas Regulatory Authority (Ogra) on Wednesday conducted public hearing to consider an increase of Rs269 per unit in the prescribed price of Sui Northern Gas Pipelines Limited (SNGPL) for financial year 2021-22.
In its petition, SNGPL demanded a review of the estimated revenue requirement of the public gas utility for 2021-22.
It called for increasing the prescribed gas price by Rs269 per million British thermal units (mmbtu), adding that if the shortfall of prior years was included, the requirement would increase to Rs907 per unit.
During the hearing, SNGPL Managing Director Ali Hamdani appreciated Ogra for providing the company with an opportunity to present its case. In his opening remarks, he requested the authority to consider the petition positively and allow a just and equitable revenue requirement, especially in areas where investment had already been made.
A delegation of the company delivered detailed presentation on different aspects of the petition.
Of the total 150% increase requested by the company in the prescribed price, 111% was on account of the shortfall already determined by Ogra for prior years. The remaining 39% represented the cost of gas, which made up 80% of the total cost, it said.
Published in The Express Tribune, December 2nd, 2021.
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