ISLAMABAD – Sui companies (Sui Northern Pipeline Limited, Sui Southern Gas Company) are seeking an increase of 5 percent over lase prescribed prices in their revised estimated revenue requirements (RERR) for fiscal year 2026.
Both asked slight uptick in domestic cost of gas for both companies due to higher estimated of Rs/USD depreciation. Increase in RLNG diversion estimate 81,303 BBTUs (2 percent additional from fiscal year 2026 ERR decision). RLNG diversion is higher by 65 percent year over year on account of low offtakes by power sector and shifting of captive power plants to grid. Increase in T&D cost, mainly due to repair and maintenance for transmission lines effected by floods and infrastructure budget for RLNG connections and Fiscal year 2024 prior year adjustment worth Rs 34 billion requested by SSGC.
As per SNGPL, power sector offtakes had declines by 150-200 mmcfd from committed demand of 550 mmcfd. Similarly, captive consumption had dropped from 190 mmcfd to 60 mmcfd. SNGPL estimates gas suspension of 269 mmcfd for fiscal year 26 with majority (389 mmcfd) to be curtailed during second half of fiscal year 26.
The actual gas price increase will likely be insignificant or nill since Oil and Gas Regulatory Authority (OGRA) disallows several line items, including finance costs, Ufg disallowances, PYA and revenue shortfall in Balochistan, according to Optimus Capital Management.
In separate petitions RERR fiscal year 26, for both sui companies have sought average BBTU volumes decline from 495,545 to 471,976. Requested to increase cost of gas from Rs 1533 to Rs 1547 per mmbtu have been submitted. Projected oil prices from $75 per bbl to $73 per bbl has seen. The exchange rate is sought to increase from Rs 280 to Rs 284.
Prescribed prices (without PYI) is sought to increase from 1793 to 1886 and including PYI is 1958. Decision ERR fiscal year 26 is 1793.
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