Sui gas firms propose price hikes, bagasse producers request lower tariffs

April 10, 2025 (MLN): Pakistan's state-run Sui gas companies have proposed price hikes for the upcoming fiscal year in order to address increasing financial requirements, while bagasse-based power producers have requested lower tariffs in separate filings with regulators.

Sui Northern Gas Pipelines Ltd. (SNGPL) has filed a request with the Oil and Gas Regulatory Authority (OGRA) to raise its average gas price to Rs2,485.72 ($2.50) per million British thermal units (MMBTU), citing a financial shortfall of Rs709.97 billion ($2.5bn).

The company is seeking to recover Rs207.43bn, as per the press release issued today.

Public hearings on the proposal will be held in Lahore on April 18 and Peshawar on April 28.

In a similar move, Sui Southern Gas Company (SSGC) has asked for approval to raise its average gas price to Rs4,137.49 per MMBTU, with a total estimated financial need of Rs883.54bn.

The company aims to recover a deficit of Rs44.33bn.

SSGC’s hearings are scheduled for April 21 in Karachi and April 23 in Quetta.

Meanwhile, bagasse-based power producers, including JDW, Hamza Sugar Mills, RYK Mills Ltd., Chiniot Power Ltd., Almoiz Industries Ltd., Chanar Industries, Thal Industries Corporation, and Shak Taj Sugar Mills, have approached the National Electric Power Regulatory Authority (NEPRA) with petitions.

They are seeking a reduction in electricity tariffs.

A hearing is set for April 16 in Islamabad.

The producers are requesting a review of fuel cost tariffs, permission to sell electricity directly to large consumers, and a 50% reduction in working capital requirements.

Additionally, Attock Gen Ltd. and Foundation Power Company have filed a joint petition seeking adjustments to their operations and maintenance indexation mechanism and a reduction in the insurance cap to 0.90%.

NEPRA will hear their case on April 16.

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