A proposal has been made to implement a uniform gas tariff system for non-export industries throughout the country, well-informed sources told ProPakistani.
In a move that could have far-reaching consequences, Sui Southern Gas Company (SSGC) is advocating for a uniform gas tariff system for non-export industries.
Sources said the proposed system aims to streamline the costs associated with gas consumption, but it has raised questions about its impact on the Sui-Southern region’s industrial landscape.
Under this proposed uniform tariff system, gas prices for non-export industries in Sui Southern could see a substantial increase, potentially reaching Rs. 2,600 per million British thermal units (MMBTU). This significant price hike could place added financial burdens on local industries in the region.
Sources suggest that the gas price for non-export industries in Sui Southern currently stands at Rs. 1,400 per MMBTU, implying a potential increase of up to Rs. 1,200 per MMBTU under the new proposal. Proponents of this change argue that a uniform tariff system would render natural gas more affordable for non-export industries in the southern region.
However, Sui Northern Gas Pipelines Limited is expected to reap the benefits of this proposal, with non-export industries within its jurisdiction potentially receiving gas at a rate of Rs. 3,340 per MMBTU. Currently, Sui Southern’s non-export industry secures gas at a rate of Rs. 3,650 per MMBTU, making SNGPL’s tariff significantly more favorable.
Intriguingly, the International Monetary Fund has also recommended the introduction of a uniform tariff system for non-export industries across the country. This move aligns with the broader efforts to standardize gas tariffs and promote a fair pricing structure for industries throughout Pakistan.
Sources added that a summary of the proposal for the uniform tariff system is expected to be presented at the next meeting of the Economic Coordination Committee.