The Oil and Gas Regulatory Authority (Ogra) conducted a public hearing in Lahore on Monday regarding proposed increases in gas tariffs. This marks the third such hearing in the current fiscal year, prompted by Sui Northern's request for a substantial 147% hike. The next hearing is scheduled for Wednesday in Peshawar, where Sui Northern seeks to raise rates by Rs2,646.18 per mmbtu, resulting in an average price of Rs 4446.89, citing a projected revenue shortfall of Rs189.18 billion.
Should the request be granted, the higher gas prices would come into effect for consumers in Punjab, Khyber Pakhtunkhwa, and Islamabad starting July 1. Following the conclusion of the hearing, Ogra officials expressed skepticism regarding the necessity of the proposed increase, stating that a final decision would be made after considering objections raised during the public hearings.
The Lahore Chamber of Commerce and Industry (LCCI) and All Pakistan Textile Mills Association (APTMA) have both strongly opposed the proposed hikes, labeling them as detrimental to industry. LCCI Vice President Adnan Butt highlighted that gas prices in Pakistan are already significantly higher than global standards, warning that further increases could lead to factory closures. Similarly, APTMA called for an examination of Sui Northern's performance and advocated for reductions in gas and electricity prices.
Last week, similar public hearings were held in Karachi and Quetta in response to Sui Southern's request for a Rs 324.3 per mmbtu increase, aiming for a new average price of Rs 1740.80 per mmbtu. This move is estimated to burden consumers by Rs79.63 billion, with a projected revenue shortfall of Rs79.63 billion in the coming fiscal year.
Following the hearings, a final decision will be forwarded to the federal government for approval. If sanctioned, Ogra will issue a notification to implement the gas price hikes.
