SNGPL strikingly hikes gas prices amid cut in electricity rates
Sui Northern Gas Pipelines Limited (SNGPL) has increased gas prices by 39% in a bid to maintain uninterrupted supply and meet its financial requirements.
According to company officials, the hike includes a surcharge linked to delayed payments under the circular debt category.
SNGPL’s spokesperson explained that the price adjustment is also due to reduced gas consumption by captive power plants (CCPs), prompting the government to advise CCPs to switch to the national electricity grid.
The spokesperson further noted that an additional 51% increase stems from the supply of expensive RLNG to domestic consumers. Despite the significant price hike, SNGPL claims that its operating expenses constitute only 4% to 6% of total revenue.
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