Shocking News: Gas Supply Suspended in Karachi’s DHA and Nearby Areas
The residents of Karachi’s Defence Housing Authority (DHA), along with nearby areas like Defence View, Azam Basti, and Akhtar Colony, are facing a major inconvenience as the Sui Southern Gas Company (SSGC) has announced a suspension of gas supply. The disruption stems from significant damage to a 24-inch supply line caused by third-party excavation work near the Jam Siddiq Bridge.
SSGC’s spokesperson confirmed that emergency repair teams are already on-site, working to fix the issue. The company has assured residents that the gas supply is expected to be restored by 6:00 AM tomorrow, provided the repair efforts proceed as planned. While this issue is temporary, residents have been urged to take precautionary measures.
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Potential Gas Price Hike Looms Over Consumers
Adding to the concerns of consumers, the Sui Northern Gas Company (SNGC) has submitted a proposal to the Oil and Gas Regulatory Authority (Ogra), seeking a Rs 64 per MMBTU increase in gas prices. This proposal comes amid a significant financial shortfall of approximately Rs 20.58 billion for the current fiscal year. Included in this amount is Rs 489 million allocated for the LPG AirMix project.
In addition, SNGC has reported additional costs associated with transferring Reversed Liquefied Natural Gas (LNG) for domestic consumers. These prices are directly tied to High-Speed Fuel Oil (HSFO) and crude oil rates, potentially leading to further price increases for households.
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LNG Prices to Skyrocket for Domestic Users
SNGC’s proposal also includes raising the LNG supply cost for all consumer categories to Rs 1,711.73 per MMBTU, effective July 1, 2024. If approved, this price hike could create additional burdens on domestic consumers. Experts believe that such an increase could ripple across other sectors, affecting the overall cost of living.
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The Road Ahead: What to Expect
The proposed gas price increases are not limited to the shortfall recovery. They also aim to address costs incurred during the transfer and pricing alignment of LNG with international oil rates. While these measures are aimed at stabilizing the financial position of SNGC, they are likely to affect millions of domestic and industrial consumers across the country.
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FAQs on Gas Supply and Price Hike
1. When will gas supply be restored in Karachi’s DHA? Gas supply is expected to be restored by 6:00 AM tomorrow, subject to successful repairs.
2. Why is there a proposed gas price hike? The price hike is due to a financial shortfall of Rs 20.58 billion, including costs for the LPG AirMix project and LNG supply adjustments.
3. How will the LNG price increase affect consumers? Domestic consumers will face higher utility bills as LNG prices are aligned with international oil rates.
4. Are there any alternatives for reducing energy costs? Programs like the CM Punjab Solarization Program offer sustainable energy solutions.
5. What steps are being taken to address gas supply disruptions? Emergency repair teams are actively working to resolve the damage and restore supply promptly.