Monday, March 25, 2024
Ogra's choice anticipated after formal review in Peshawar.
SNGPL expects to climb normal gas cost to Rs4,446.89 per mmbtu.
Organization faces a projected income shortage of Rs189.18bn.
ISLAMABAD: The Oil and Gas Administrative Power (Ogra) is gathering a formal review in Lahore on Monday (today) on a request put together by the Sui Northern Gas Pipeline Restricted (SNGPL), looking for a gigantic 147% increment in gas costs for the Monetary Year 2024-25.
On the off chance that the proposed third increment in no less than a year is endorsed, it is expected to significantly climb the expansion rates and overburden the less fortunate sections of the general public.
The SNGPL, taking special care of over 7.22 million buyers in North Focal Pakistan, dominatingly in Punjab, Khyber Pakhtunkhwa and Azad Jammu and Kashmir, faces a projected income shortage of Rs189.18 billion.
The proposed gas cost flood is scheduled to produce results from July 1, 2024.
The organization intends to hoist the typical gas cost to Rs4,446.89 per Metric Million English Warm Unit (mmbtu), mirroring a climb of Rs2,646.18 per mmbtu.
The expected cost of Rs4,446.89/mmbtu envelops earlier year's deficits in the gaseous petrol business. Besides, the SNGPL has stated an expense of administration for regasified condensed petroleum gas (RLNG) at Rs325.08 per mmbtu for a similar period.
Following the Lahore hearing, the Ogra would assemble one more meeting in Peshawar on Walk 27, with the controller accepting it would give enough of a chance to partners, customers and the overall population to voice their complaints.
The choice with regards to this issue would be made by Ogra after finish of the formal review in Peshawar.
SSGC supplication
The Ogra, beforehand on eighteenth and twentieth of this current month, directed formal reviews in Karachi and Quetta in light of a request from Sui Southern Gas Organization (SSGC).
The SSGC, in its request, upheld for an expansion in gas cost by Rs274.40/mmbtu, refering to an expected income shortage of Rs79.63 billion.
The organization encouraged OGRA to set the normal cost of one mmbtu gas at Rs1,740.80.
The SSGC's request includes projections for the typical recommended gas cost and RLNG cost of administration for the monetary year, intending to take care of gas costs, working costs and return on resources.
Also, the SSGC's request resolves issues, for example, gas supply volume projections from neighborhood gas fields, measures taken to meet the nation's raising energy interest and foundation speculations to interface new regions.
In a connected turn of events, the material business has chosen to challenge the monstrous expansion in gas duty looked for by the SNGPL.
Industrialists to go against climb
During the Ogra hearing, the All Pakistan Material Factories Affiliation (Aptma) and Lahore Chambers have chosen to go against the SNGPL's request completely.
The Aptma would scrutinize every one of the suspicions and projections in the request about the RLNG redirection to the homegrown area in 2024-25 and furthermore about projection guaranteed under the expense of gas, including RLNG and LPG Air Blend Appropriation at Rs702.411 billion.
The material business has likewise chosen to take on the Sui Northern on high UFG (unaccounted for gas) in its organization which is at 12%, 5-6 times higher than global benchmarks.
The SNGPL is looking for a redirection cost of Rs298 billion in the request, about $1 billion, with cross-sponsorship to be borne by businesses, expecting SNGPL plans to grow its organization, burning through huge number of rupees to increment homegrown utilization, bringing about higher help expenses and more homegrown RLNG redirection. For this, the Sui Northern will grow the pipeline foundation with working capital of Rs56.754 billion.
The material business would likewise look for the reasoning behind the cost of LPS (late installment overcharge) and Working Capital (Rs125.3 billion) and the explanation and defense for requesting immense working costs against LPS installment to leasers and funding cost for working capital Rs125.322 billion in the background of ordinary gas deal cost correction by the national government.
During the meeting, it would likewise look for an assessment of capital costs adding up to Rs21.520 billion and income costs adding up to Rs1.949 billion asserted for UFG control exercises considering 7.25% UFG projected by the organization.
Homegrown area utilization in the SNGPL network expanded by over 4% from 310 BCF in FY2022 to 323 BCF in FY2023 with the most elevated UFG rates and cost of administration.
