Islamabad May 20 2025: The Oil and Gas Regulatory Authority (OGRA) has approved revisions to the estimated revenue requirements for Pakistan’s two major gas utilities, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), for the fiscal year 2025-26.
The decisions could lead to a net increase of approximately PKR 21 per MMBTU in average prescribed gas prices for consumers, based on a comparison of the adjustments allowed by OGRA. However, government may keep prices unchanged for domestic consumers and pass on the burden of incremental cost by increasing gas prices for captive power plants.
According to OGRA’s official notification dated May 20, 2025, the regulator has approved a PKR 116.90 per MMBTU increase in average prescribed prices for SNGPL, compared to the previously determined rate for FY 2024-25. Meanwhile, OGRA has approved a PKR 103.95 per MMBTU decrease in the average prescribed price for SSGCL for the same period.
When averaged across the national consumer base and distribution, the net effect points to an approximate PKR 21 per MMBTU increase in natural gas prices.
OGRA stated that the hike in SNGPL’s rates is mainly attributable to the increasing burden of re-gasified liquefied natural gas (RLNG) diversion, as per the Federal Cabinet’s decision on October 30, 2023. The diversion of RLNG — which is more expensive than indigenous gas — has significantly inflated SNGPL’s costs. OGRA has directed SNGPL to engage with the federal government for a thorough review of gas supply management, considering energy demand, international obligations, and macroeconomic conditions.
On the other hand, SSGCL’s reduction reflects lower allowances for past year shortfall recoveries and a more stable cost base, leading to a downward revision of PKR 103.95 per MMBTU.
OGRA has forwarded its determinations to the federal government for category-wise sale price advice. Until a new notification is issued, the existing gas sale prices will continue to apply.
