Oil & Gas Exploration Companies: Hike in Gas Prices to unlock valuation – By Insight Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">After month of delays, gas prices have been increased across the board, aimed at addressing the ongoing challenge of gas circular debt. These adjustments were long overdue, prompted by a significant depreciation in the PKR/USD parity coupled with changes in international oil prices. To highlight, cost of gas for Sui companies hinges on wellhead gas prices, which are indexed to international oil prices and PKR/USD parity. Hence, it has been imperative to pass on the effects of rising international oil prices and steep currency devaluation. Furthermore, diversion of costly Re-Gasified Liquefied Natural Gas (RLNG) to domestic consumers also aggravated the flow of circular debt in gas sector. Previously, gas prices were increased by up to 113% in ...