SSGC's 286% gas tariff hike petition rejected

Business leaders have opposed a petition by Sui Southern Gas Company seeking a steep increase in gas tariffs for FY2026–27, urging the Oil and Gas Regulatory Authority to reject the proposal in the interest of industrial sustainability.

In a statement, Zubair Motiwala and Muhammad Rehan Hanif said the effective increase could reach 286% when accumulated shortfalls are included, pushing the prescribed price to around Rs6,855 per MMBTU. On a standalone basis, SSGC has sought a 121% hike to about Rs3,935 per MMBTU, compared to the 21% increase requested by Sui Northern Gas Pipelines Limited.

They argued that the proposal shifts the burden of financial inefficiencies onto consumers instead of reflecting actual service costs. Despite a decline in gas throughput, operating expenses have risen sharply, indicating weak cost control.

The leaders also opposed including interest on Gas Development Surcharge receivables and other adjustments, calling them policy matters that should not be passed on to consumers.