ISLAMABAD – The Oil and Gas Regulatory Authority (OGRA) is likely to take up the petition of Sui Northern Gas Pipelines Limited (SNGPL) to raise gas price in the first week of March. The SNGPL in its petition, while projecting a shortfall of Rs 17,029 million in the company’s revenues for the current financial year, has requested for an increase of Rs 28.03 per MMBTU in the average prescribe gas price with effect from July 1, 2011.
The company filed the petition before the OGRA on November 30, 2010 to determine its estimated revenue requirements for the financial year 2011-12. The petition said that the cost of gas in financial year 2011-12 is a result of assumptions, including crude oil average FOB prices of $84.76 per barrel and HSFO average FOB prices of $495.57 per metric tonne, sources said. It further said that the change in operating cost is a result of inflation, while increase in return on assets is due to expected capitalisation of new assets.
OGRA has invited interested or affected people, including gas consumers and general public to furnish their comments, suggestions and intervention requests within 21 days from the date of publication of the notice. All correspondents, in this connection, may be addressed to OGRA registrar and should contain names and addresses of applicants. The OGRA registrar said that the intervention request should be accompanied by an affidavit verifying the contents of intervention.
