Sui Northern hit with 35% tariff hike, Southern sees 8.5% increase

ISLAMABAD, Feb 06: The Oil and Gas Regulatory Authority (OGRA) has sanctioned substantial tariff increases of 35.1 percent for Sui Northern and 8.5 percent for Sui Southern, effective from February 2nd.
The notification for the increase has been forwarded to the federal government for final endorsement.

According to the notification, the average price of gas within the Sui Northern system has surged from Rs 1238.68 to Rs 1673.82 per mmbtu, permitting Sui Northern to accumulate an additional Rs 180 billion from its customers. Similarly, the average gas price for Sui Southern has risen from Rs 1350.68 to Rs 1466.40 per mmbtu, authorizing Sui Southern to gather an extra Rs 48 billion from consumers.

In the wake of escalating gas theft, OGRA revealed its disappointment in the failure of the Sui companies to submit an effective plan to curb this illicit practice. It's estimated that Sui Northern will suffer losses amounting to Rs 14.77 billion this fiscal year due to gas theft.

Furthermore, OGRA has sanctioned the transfer of the burden of a 10 percent super tax on company profits to consumers. Despite government directives to prevent the passing on of the levy to consumers, this move has been approved.

In another development, Sui Northern has been granted permission to establish an office in Kirk, with an annual expenditure allocation of Rs 10 crore.

The approval of these measures by OGRA marks significant changes in the gas tariff structure, placing an additional financial burden on consumers amid ongoing challenges faced by the gas companies.