ISLAMABAD: The Oil and Gas Regulatory Authority has reduced gas prices for consumers of Sui Northern Gas Pipeline Limited and Sui Southern Gas Company Limited by up to eight per cent for the fiscal year 2025 26. The decision follows a detailed review of both companies’ revenue requirements and aims to provide relief to domestic and commercial consumers struggling with rising energy costs.
OGRA has also transferred sixty billion rupees to consumers to address prior adjustments and tackle the growing stock of circular debt in the gas sector. As part of the financial settlement, SNGPL has been adjusted by thirteen thousand five hundred and sixty five million rupees while SSGC has been adjusted by forty seven thousand three hundred and fifteen million rupees. The determination has now been forwarded to the federal government for approval of category wise sale prices.
According to the regulator, the average prescribed price for SNGPL has been provisionally set at one thousand eight hundred and four rupees per MMBTU for the next fiscal year which reflects a three per cent reduction from the current rate. For SSGC the average prescribed price has been fixed at one thousand five hundred and forty nine rupees per MMBTU marking an eight per cent decrease. OGRA noted that cost optimisation and the inclusion of deferred cargo benefits for Pakistan LNG Limited played a key role in achieving the reductions.
OGRA reaffirmed its commitment to safeguarding consumer interests while promoting financial discipline across the gas supply chain. The authority has clarified that existing consumer gas sale prices will stay in effect until the federal government advises revised category wise rates. Any notified changes will be implemented accordingly by OGRA once approved.
The reductions come despite significant increase requests from both gas utilities. SNGPL had sought a twenty eight point six two per cent average jump equivalent to an additional five hundred and five rupees per MMBTU. SSGC had proposed a twenty one point eight two per cent rise which equals three hundred and sixty one rupees per MMBTU. Both companies cited rising operational costs and major revenue shortfalls as justification for their demands.
SNGPL projected a shortfall of fifty two point nine five eight billion rupees for the upcoming fiscal year driven by higher RLNG import costs and operational expenses. SSGC estimated a deficit of twenty four point zero four nine billion rupees linked mainly to escalating gas purchase costs and financial charges. Despite these projections OGRA’s assessment resulted in substantial downward revisions aimed at easing the burden on consumers.
