Islamabad (Business Desk) Sui Northern and Sui Southern Gas Companies have submitted applications to the Oil and Gas Regulatory Authority (OGRA), seeking an increase in average gas prices. They have requested that the proposed increases take effect from July 1 of the current fiscal year.
Sui Northern has proposed an increase of Rs10.40 per million British thermal units (MMBtu) in the average gas price, seeking to raise the rate from Rs1,702 to Rs1,712.40 per MMBtu.
Meanwhile, Sui Southern has proposed an increase of Rs366.75 per MMBtu, requesting that the average rate be set at Rs2,071.75.
Sui Northern has also included Rs60.147 billion in costs related to LNG services in its proposed price. According to the application, the company's LNG cost will amount to Rs471.16 per MMBtu.
The company stated that limited availability of locally produced gas during the winter season would require it to arrange additional supplies, for which cargoes from 16 LNG vessels would be needed.
The Sui gas companies have also cited rising international crude oil prices as one of the reasons for seeking an increase in gas rates.
OGRA will decide on gas prices after conducting hearings on the applications submitted by both companies.