According to the Bol News Pakistan reliable sources, two major gas companies in Pakistan plan to collect a massive amount of Rs. 697 billion from consumers in the current fiscal year 2023–24. Both companies plan to increase the fixed gas meter rent for non-protected customers to avoid the losses they incurred last year. The gas meter rent is expected to rise from Rs. 460 to Rs. 2,000 monthly.
Sources said Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have independently estimated their revenues at Rs. 358 billion and Rs. 339 billion, respectively.
Almost Rs. 657 billion will be allocated for gas procurement out of Rs. 697 billion. To make ends meet and offset both companies’ mounting operational expenses, a proposal to hike gas rates by 100 percent is under consideration.
According to sources, if the expected increase in gas rates fails, gas companies can have a combined loss of Rs. 395 billion. This looming financial crisis follows a troubling precedent, as SNGPL and SSGC lost Rs. 245 billion last year due to the non-implementation of higher gas rates.
If approved, the impact of the 100 percent rate hike will be felt across the board, with fixed charges for non-protected customers expected to soar from a nominal Rs. 460 to a substantially higher Rs. 2,000. Starting with the next billing cycle, domestic consumers will experience a proposed increase in gas prices.
The recent decision by gas companies to raise gas meter rent has sparked a passionate discussion among consumers and policymakers. This increase will undoubtedly place a greater financial burden on households and businesses nationwide.
The actual consequences of the price hike will manifest in the following months as talks on the proposal continue and consumers prepare themselves for higher gas bills.