Web desk: Gas prices in Pakistan are likely to rise soon as both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have asked the Oil and Gas Regulatory Authority (OGRA) to approve major tariff increases for the next financial year 2025–26.
According to their petitions, SNGPL has requested a 28.62 per cent rise in gas prices, while SSGC has sought a 22 per cent increase.
The proposed hikes also include previous dues that the companies say are still unpaid. If approved, the increase will apply to consumers across the country.
SNGPL has proposed an increase of Rs189 per MMBTU, which would set the average prescribed price at Rs1,955.50 per MMBTU.
The company says it needs the rise to meet its financial requirement of more than Rs52.9 billion for the upcoming year.
On the other hand, SSGC has requested a hike of Rs125.41 per MMBTU, setting its average gas price at Rs1,658.56 per MMBTU.
It has an estimated total financial needs of over Rs 24 billion.
Public Hearings on Two Petitions
OGRA has scheduled public hearings to review both requests. The hearing for SNGPL will take place on November 7, while the one for SSGC will be held on November 11.
During these hearings, the regulator will assess the companies’ financial details and decide whether to approve or modify the proposed rates.
In their applications, SNGPL also reported a shortfall of Rs582 million under the LPG Air Mix subsidy program.
Meanwhile, SSGC has asked for the recovery of Rs 34.25 billion to cover losses from previous years.
Gas prices in Pakistan will increase sharply if OGRA approves the proposals.
The rise is expected to directly affect households and industries that are already struggling with high energy costs and inflation.
A price hike would likely add more pressure on consumers. The increase is expected in the cost of living and production for businesses nationwide.
