Web desk: OGRA has issued an official notification of gas price reduction for December 2025, under which the rates of the country’s two major gas distribution companies, Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL), have been significantly reduced.
The price for Sui Southern Gas Company (SSGC) has been reduced by $0.67 per MMBTU, bringing it down from $11.45 to $10.77 per MMBTU.
Similarly, Sui Northern Gas Pipelines Limited (SNGPL) consumers will see a reduction of $0.57 per MMBTU, lowering the price from $12.39 to $11.82 per MMBTU.
OGRA officials said the reduction will be effective for the entire month of December, aimed at balancing costs in the gas sector and easing the burden on consumers.
Experts noted that the adjustment considers fluctuations in global energy prices and the cost of imported fuel, providing some relief to local users.
Industry representatives said the lower gas prices are expected to reduce production costs, benefiting textile, fertiliser, cement, and other energy-dependent sectors. And potentially boosting exports and overall economic activity.
OGRA said the reduction in RLNG prices follows federal government policy and is mainly due to a drop in the Delivered Ex-Ship (DES) price.
The revision is expected to provide some relief to RLNG consumers in December.
Govt may raise petroleum levy
Previously, the government was weighing a Rs5 per litre increase in the petroleum development levy (PDL) as part of a plan to reduce the country’s Rs1.7 trillion gas sector circular debt, sources familiar with the matter said.
Under the proposed framework, the government aims to retire the debt over six years by raising around Rs550 billion through the additional levy.
The plan also includes diverting dividends from state-owned gas companies and using savings generated by cutting the number of imported LNG shipments.
The gas sector’s total circular debt currently stands at roughly Rs3.18 trillion. Of the Rs1.7 trillion targeted for repayment under this strategy.
About Rs1.4 trillion consists of non-recoveries, line losses, and tariff gaps, while approximately Rs300 billion relates to taxes and interest.
Dividends from gas companies would be redirected towards clearing the debt, with the additional PDL expected to contribute a significant portion of the required funds.
