OGRA approves gas price hike for bulk consumers, industry

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has made a formal announcement of a gas price hike for the majority of consumers, power plants, and industrial sectors, effective July 1, 2025, ARY News reported.

The announcement has been issued through a formal notification, which comes as part of the government’s comprehensive approach to match electricity rates with cost recovery and regulatory compliance.

The notification mentions that gas price in Pakistan will not be changed for domestic consumers in terms of tiered rates.

The monthly charges for home users will increase. People with some protection will now pay Rs600 each month, which is an increase from Rs400. Those without protection will see their monthly fee rise from Rs1,000 to Rs1,500.

High-usage households consuming more than 1.5 cubic meters of gas will face a further increase, with fixed charges jumping from Rs2,000 to Rs2,400.

The Economic Coordination Committee (ECC), led by Finance Minister Muhammad Aurangzeb, accepted the updated pricing model during the current session.

The ECC emphasised maintaining affordability for household users while ensuring financial sustainability for the gas sector.

The OGRA gas price hike also includes a 10% increase in tariffs for gas-powered power plants and industrial users. This move is aligned with structural benchmarks agreed upon with the International Monetary Fund (IMF), which advocates for rationalising energy subsidies and shifting toward targeted support for low-income consumers.

Notably, gas prices for commercial users, tandoors, CNG stations, cement, and fertiliser sectors remain unchanged, providing some relief to key economic segments.

This gas price hike in Pakistan is part of a broader fiscal strategy aimed at reducing the circular debt in the energy sector and ensuring uninterrupted gas supply to high-priority sectors.

Earlier, the Oil and Gas Regulatory Authority (OGRA) slashed the price of Liquefied Petroleum Gas (LPG) by Rs4.62.

As per the notification issued by the OGRA on Saturday, the LPG rates have been reduced to Rs 240.43 per kilogram after a reduction of Rs 4.62.