ISLAMABAD: Below the IMF diktat, it’s no longer potential for the federal government to implement the current gas sale price with a shortfall in Sui gas corporations from now onward.
The federal government will improve the gas sale tariff underneath the 2022 modification made in step with the directive of the Fund guaranteeing zero deficit to the Sui utilities within the previous 12 months.
“This implies a rise within the gas sale price is imminent to handle the shortfall of Rs40 billion that the Sui Northern is going through,” a senior official of the Ministry of Power advised The Information.
“We’re analyzing the dedication of Ogra on prescribed gas costs for FY26. The regulator decided the hike in prescribed gas price by Rs116.96 per MMBtu for shoppers of Sui Northern Pipeline Restricted (SNGPL) and decreased the tariff of shoppers of Sui Southern Gas Firm (SSGC) by Rs103.95 per MMBtu.”
“We’ve to implement a uniform gas price throughout the nation, although the Ogra has given a differential tariff for each gas utilities. We’ve to determine which form of shoppers must be uncovered to much less hike or extra hike and nil hike in gas tariff.”
“To this impact, the official conferences of prime functionaries of the Petroleum Division would start in the present day (Monday) as the federal government is meant to implement the gas sale price in 40 days after Ogra dedication.”
Within the dedication of the regulator, Sui Southern received good points of Rs34 billion which might be used to scale back its inventory of the prior years’ losses. Sui Southern is confronted with prior 12 months losses of Rs400 billion within the interval of 2013-2020 due to no gas price changes by the previous governments.
“Nevertheless, the SNGPL is braving the lack of Rs40 billion within the previous 12 months and to address the stated loss, the hike in gas tariff could be staggered among the many shoppers of the entire nation.”
The official stated within the days to come, it will be determined which classes could be witnessing the rise in gas sale price. Nevertheless, with a hike in tariff, Sui Southern will get extra benefit of Rs15 billion within the 12 months aside from Rs34 billion good points prolonged within the Ogra dedication.
“The prior 12 months losses from 2013 to 2020 for Sui Northern stood at Rs900 billion together with the price of LNG diversion to the home sector. That is how the prior 12 months losses of each gas utilities stand at Rs1,300 billion.”
