Islamabad: The two main gas utilities in Pakistan have submitted separate petitions to the Oil and Gas Regulatory Authority (OGRA), seeking an increase of up to 28.62% in natural gas prices for consumers across the country.
According to the sources, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) have cited rising operational costs, liquefied natural gas (LNG) service charges and previous year’s shortfalls as the main reasons behind the proposed hikes.
OGRA Hearings Scheduled
OGRA will hold public hearings on the tariff revision requests next month SNGPL’s case on November 7 and SSGCL’s on November 11 to determine new gas rates for the upcoming fiscal period.
In its application, SNGPL, which supplies gas to Punjab, Khyber Pakhtunkhwa and Islamabad, has proposed an average increase of Rs189 per million British thermal units (mmBtu). The company has also sought an additional Rs316.64 per mmBtu under the cost of LNG services head, bringing the total proposed adjustment to nearly 28.62%.
Meanwhile, SSGCL, which serves Sindh and Balochistan, has requested an overall 22% increase in gas tariffs, incorporating adjustments for last year’s arrears.
Background and Implications
The utilities have argued that the current consumer gas prices are insufficient to cover distribution and LNG import costs amid global energy price fluctuations. OGRA’s final decision, expected later in November, will determine whether the proposed hikes are justified under the existing revenue requirement framework.
Any approved increase will impact both domestic and industrial consumers, with analysts warning that higher gas prices could further fuel inflationary pressures already affecting households and businesses across Pakistan.
The government, facing mounting fiscal constraints and commitments under the IMF program, has pledged to align energy tariffs with cost-recovery levels to reduce subsidy burdens on the national budget.
