The SNGPL has filed a petition with Oil and Gas Regulatory Authority (Ogra) in this regard. The petition is now under review of the oil and gas regulator for determination of gas tariff for the gas utility.
In its petition, the SNGPL requested to increase the prescribed price/sale price in each category of consumers and determine the cost of supply component in RLNG of Rs 111.32 per mmbtu with effect from July 01, 2019. Diversion of RLNG to domestic consumers in winter of 2018-19 cost SNGPL Rs 80.84 per mmbtu. The SNGPL has projected the estimated RLNG prices at $10 mmbtu based on the estimated exchanged rate Rs 160.00 per $1.
The petitioner has claimed the RLNG cost at price slope at 13.37 percent of estimated Brent Price in 2019-20 of $ 70 bbl. The RLNG internally consumed for the year is projected 6.9 bcf worth of Rs 11.6 billion at the rate of average cost price of Rs 1,600.
The petitioner has also sought capital expenditure for installation of 605,450 new connections including 450 industrial, 5,000 commercial and 600,000 domestic gas connections in Punjab and KP at a cost of Rs 8.1 billion.
The petitioner stated that net cumulative shortfall of Rs 272 billion for normal business includes shortfall of Rs 143 billion up to financial year 2017-18 and Rs 21 billion in respect of financial year 2018-19.
The federal government will take a decision on category-wise consumer sale prices in the light of Ogra''s determination of ERR of both the gas utility companies for the financial year 2019-20. Sui Southern Gas Company (SSGC) has already filed its petition for the determination of ERR.
Both the gas companies have sought increase in prescribed gas prices with effect from July 1, 2019 to meet revenue requirements of the gas utilities for the financial year 2019-20. The SNGPL demanded an average increase of Rs 723 to take the price to Rs 1,224 per mmbtu with effect from July 1 for the financial year 2019-20. The SSGCL has sought about Rs 106.54 increase in its average prescribed price of Rs 591.67 per unit to reach Rs 698.21 per unit.