LAHORE– In response to the petition filed by the SNGPL in respect of review of its estimated revenue requirement for FY2021-22, the Oil and Gas Regulatory Authority (OGRA) conducted a public hearing on Wednesday.
The SNGPL has filed petition for increase in the prescribed price by Rs269 per MMBTU for the year 2021-22 and if prior years shortfall, already determined, is included, the requirement increases to Rs907 per MMBTU.
In the public hearing MD SNGPL, Mr. Ali J Hamdani, while delivering opening remarks appreciated the OGRA for giving the Company an opportunity to present their case.
He requested OGRA that their petition be considered positively allowing just and equitable requirements especially in areas where investments have already been made.
MD SNGPL was assisted by his team who gave a detailed presentation on different aspects of the petition.
It is pertinent to mention that out of total increase of 150% requested by the Company in the prescribed price, 111% increase is on account of the shortfall already determined by OGRA for prior years while the remaining increase of 39%,mainly represents cost of gas which consists of 80% of the total costs.
Increase in cost of gas is primarily associated with the increasing trend in crude oil prices and Rupee to dollar parity.
The increase in prescribed price requested and consequently allowed by OGRA does not mean the direct increase in consumer price rather Federal Government determines the Consumer Sales prices keeping in view the socio-economic conditions of the Country.
The public hearing ended with concluding remarks by the honorable Chairman OGRA.— PRESS RELEASE
