ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) will hear the SSGC’s petition for a consumption tax hike for Sindh and Balochistan tomorrow.
Sui Southern Gas has requested a 96.36 per cent increase in the gas tariff. The gas utility has requested an additional Rs 667.44 per MMBTU increase in the fuel rate.OGRA to consider raising Sindh and Balochistan gas.
The gas company has asked OGRA to revise the fuel tariff at Rs 1,360 per MMBTU. Sui Southern’s current fuel tariff is fixed at Rs 692.63 per MMBTU.
The SSGC has applied to OGRA to meet revenue requirements for the current fiscal year. OGRA after the decision will forward it to the central government for approval.
The central government will make the final decision on gas rate hikes for both provinces. The International Monetary Fund (IMF) called in September to raise domestic gas rates ahead of winter.
The source said the government had asked lenders to give them time to make necessary corrections and raise tax rates to reduce the country’s revolving debt.OGRA to consider raising Sindh and Balochistan gas.
Estimates say gas rates could rise from 45% to 53%. However, the government has assured lenders that small consumers will be accommodated and not overcharged.