ISLAMABAD (Kashmir English): Gas prices in Pakistan are expected to increase from July after major utilities submitted requests for a price hike to the Oil and Gas Regulatory Authority (OGRA).
The country’s two main gas companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), have cited a combined revenue shortfall of around Rs1,650 billion, driven by past losses and future financial needs.
SSGC has proposed setting its gas price at Rs5,306 per MMBTU, while SNGPL has projected a further revenue decline alongside an existing deficit of Rs585 billion.
In addition, both companies have sought recovery of over Rs100 billion in costs related to liquefied natural gas (LNG) services and diversion.
Officials say the proposed increase is aimed at addressing the energy sector’s circular debt, which continues to affect operations and financial stability.
OGRA has scheduled public hearings to review the requests, with SNGPL’s hearing set for April 21 and SSGC’s on April 22. The regulator will examine factors such as unaccounted-for gas (UFG) losses and operational costs before making a recommendation.
The final decision on gas prices will be taken by the federal government after the technical review, with a likely impact on domestic, industrial, and commercial consumers across the country.
