ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has announced a sharp 19 to 22 percent increase in RLNG prices for March, affecting Pakistan’s two main gas utilities, SNGPL and SSGCL. The hike comes as global energy markets face disruption from the US-Israel conflict with Iran, pushing LNG costs higher and directly impacting domestic consumers.
For SNGPL, the RLNG price at the transmission stage has risen 19.3 percent to USD 12.49 per mmBtu, while distribution-stage prices have climbed 19.6 percent to USD 13.55 per mmBtu. SSGCL faces an even steeper increase of 22 percent for both transmission and distribution, translating into a rupee increase of Rs622 for SNGPL consumers and Rs634 for SSGCL customers.
Ogra attributes the surge to higher terminal charges, rising ex-ship prices, and other import-related costs. A reduction in LNG cargoes arriving in Pakistan has forced fixed port and terminal costs to be spread over fewer shipments. Only two cargoes arrived in March compared with eight in February after Qatar declared force majeure following Iranian drone attacks and shipping disruptions in the Strait of Hormuz.
Domestic inefficiencies also exacerbate the issue. Rising unaccounted-for gas due to pipeline leaks, theft, and billing gaps inflates system costs, forcing paying consumers to bear additional financial pressure. Experts warn that this structural problem requires urgent reform to prevent further escalation.
The broader global context compounds the challenge. Iran’s actions and halted production at key Qatari LNG facilities have removed significant supply from the market. Even if hostilities end, normal deliveries could take weeks to months, sustaining upward pressure on domestic energy prices.
The government faces a tough balancing act: maintaining fiscal discipline under the IMF program while shielding households and businesses from the full impact of global energy shocks. With limited flexibility, Pakistani consumers are likely to continue shouldering a substantial share of rising RLNG and petroleum costs in the months ahead.
