ISLAMABAD – The government has been asked by the Oil and Gas Regulatory Authority to increase the gas tariff to save Sui Southern and Sui Northern from collapse, but the former gave the impression that it is not willing to increase the gas tariff.
Owing to the increase in gas production costs, a hike in expenditures of the gas companies, raise in salaries of the employees of gas utilities and new gas development schemes, the regulator determined a rise in the gas tariff but the Nawaz government did not increase the tariff in the wake of political instability triggered by the protest politics of the PAT and PTI.
Finance ministry, however, has not paid the subsidy to the Sui Southern and Sui Northern for taking the required action on the determination of Ogra on gas tariff increase, the source said.
Because of which, they added, Sui Northern is purchasing the gas at higher cost and selling it to the consumers at lower cost and sustaining a loss of Rs7 billion per month. The Sui Northern has so far sustained mammoth loss of Rs45 billion.
