SSGC, SNGPL push for increase in gas prices

KARACHI: The Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) are seeking an increase of up to Rs194.01 per unit in gas tariffs, effective from July 1, 2019.

The public gas utilities aim to collect additional revenue of Rs93.69 billion from the endconsumers in the current fiscal year, which started on July 1, 2019.

If approved, the proposed hike in gas prices will trigger a new wave of inflation rather than a decline in the Consumer Price Index (CPI) as projected by the government.

Earlier, the State Bank of Pakistan (SBP) and high-ranking government officials anticipated a softening of inflation in the second half (Jan-Jun 2020) of the current fiscal year and a notable drop in the next fiscal year.

This will be the second gas price revision since the beginning of the current fiscal year.

The development came after the International Monetary Fund (IMF) cut its inflation forecast for Pakistan to 11.8% on Friday from the 13% anticipated in May 2019 for the current fiscal year.

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