ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has decided to raise gas prices by 39 percent. The move aims to ensure continued supply and ease financial pressure.
SNGPL says unpaid dues and late payment charges make up 39 percent of the hike. The company now plans to recover these amounts. This issue is part of the broader circular debt in the energy sector.
The price hike also follows a drop in gas use by captive power plants (CPPs). The government has advised CPPs to switch to the national electricity grid.
SNGPL says the main reason for the increase is the supply of costly imported gas (RLNG) to homes. Power plants and industries are using less gas, forcing the company to divert expensive RLNG to households.
This shift accounts for nearly 51 percent of the price hike.
The government’s push for CPPs to shift to electricity has further cut gas demand.
SNGPL clarified that only 4 to 6 percent of its income covers operations. The rest of the hike will go toward new equipment, repairs, and maintaining a smooth gas supply.
The Oil and Gas Regulatory Authority (OGRA) will make the final decision on the proposed rates.
