Gas prices likely to rise in Pakistan as SNGPL, SSGC seek major hike for FY2025-26

ISLAMABAD: Gas prices across Pakistan are expected to rise as both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have submitted petitions to the Oil and Gas Regulatory Authority (OGRA) seeking substantial tariff increases for the financial year 2025–26, ARY News reported.

According to official documents, SNGPL has requested an increase of Rs189 per MMBTU in gas prices, while SSGC has sought a hike of Rs125.41 per MMBTU.

OGRA has scheduled a hearing on SNGPL’s petition for November 7 and on SSGC’s petition for November 11, where the regulator will assess the utilities’ financial justifications before making a decision.

SNGPL has proposed an average prescribed gas price of Rs1,955.50 per MMBTU, citing an estimated financial requirement exceeding Rs52.95 billion for the upcoming fiscal year. Meanwhile, SSGC has requested to fix its average prescribed gas price at Rs1,658.56 per MMBTU, projecting financial needs of over Rs24 billion.

In addition, SNGPL has estimated a shortfall of Rs582 million under the LPG Air Mix subsidy program, while SSGC has sought recovery of Rs34.25 billion to offset losses accumulated over previous years.

If approved, the proposed revisions could result in a significant rise in gas prices for consumers nationwide, adding to the existing burden on households and industries already grappling with high energy costs.

The request from natural gas utility companies comes shortly after Prime Minister Shehbaz Sharif announced the reopening of gas connections for domestic consumers all over Pakistan— a significant move aimed at addressing the country’s long-standing energy supply challenges.

PM Shehbaz Sharif, while addressing a ceremony, stated that during the PDM government in 2022, gas supply remained a significant challenge, but the current administration has worked diligently to improve the situation.

He further said that from today, new connections of high-quality RLNG (Re-Gasified Liquefied Natural Gas) are being issued to the public.

Highlighting his government’s efforts, the Prime Minister noted that the PDM government took concrete measures to strengthen the gas infrastructure to ensure sustainable energy delivery.