Pakistan’s two major gas distribution companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), have submitted applications to the Oil and Gas Regulatory Authority (OGRA) seeking an increase in average gas prices. The proposed revisions could affect consumers if approved by the regulator and relevant authorities.
Gas consumers across Pakistan may face higher tariffs as the country’s two major gas companies have formally requested an increase in gas prices for the current financial year.
According to the applications submitted to OGRA, both SNGPL and SSGC have requested that the revised gas rates take effect from July 1, 2026.
The companies have cited rising energy costs, winter gas requirements, and international oil market conditions as major reasons behind their proposals.
However, the requested increases have not yet been approved.
Sui Northern Proposes Increase in Average Gas Price
Sui Northern Gas Pipelines Limited has requested an increase of approximately Rs 10 per million British thermal units (MMBTU) in its average gas price.
Under the proposal, the average rate would rise from Rs 1,702 to Rs 1,712.40 per MMBTU.
The company has argued that additional expenses associated with gas supply and imported liquefied natural gas (LNG) must be considered when determining the revised tariff.
SNGPL has also included Rs 60.147 billion in LNG service costs in its proposed pricing calculations.
According to its application, the LNG cost component would amount to Rs 471.16 per MMBTU.
Sui Southern Seeks Much Larger Gas Tariff Increase
Sui Southern Gas Company has proposed a significantly higher increase compared with Sui Northern.
SSGC has requested an increase of Rs 366.75 per MMBTU in its average gas price.
If the proposal is approved as submitted, the company’s average gas rate would reach Rs 2,071.75 per MMBTU.
The difference between the two companies’ proposed increases reflects their separate tariff requirements and reported operating costs.
The final rates will depend on the regulatory review and subsequent approval process.
Winter Gas Demand Creates Additional Pressure
Sui Northern has warned that domestic gas availability may remain limited during the winter season, when demand for heating and other household requirements typically increases.
The company has stated that additional gas supplies will be needed to meet seasonal demand.
According to SNGPL, approximately 16 LNG cargoes will be required to support gas availability during winter.
Imported LNG is generally more expensive than locally produced natural gas, making its procurement an important factor in the company’s pricing calculations.
The company has therefore requested that the associated costs be considered in the revised gas tariff.
Rising Global Oil Prices Cited as Another Reason
Both gas distribution companies have also pointed to increases in international crude oil prices as a factor contributing to higher energy costs.
Changes in global energy markets can influence LNG procurement expenses and the overall cost of supplying natural gas.
The companies maintain that these additional financial pressures justify adjustments to their average gas prices.
However, OGRA will review the submitted financial and operational details before determining the appropriate tariff levels.
Will Household Gas Bills Increase?
The proposed tariff revisions have raised concerns about their potential impact on household gas bills.
However, an increase in the companies’ average gas prices does not automatically mean that every domestic consumer will face the same percentage increase.
Pakistan’s household gas tariff structure includes different consumption categories and pricing slabs.
Any changes to household bills will depend on the final tariff decisions, applicable consumer categories, and official notifications.
At present, the proposals remain under consideration, and no final increase has been confirmed through the reported applications.
Companies Seek Retrospective Implementation from July 1
Both SNGPL and SSGC have requested that the revised average gas prices apply from July 1, the beginning of the current financial year.
However, retrospective implementation is subject to the relevant regulatory and government approval procedures.
The companies cannot implement their requested tariff increases solely by submitting applications.
The final decision will be made after the necessary review process.
OGRA to Hold Hearings Before Final Decision
The Oil and Gas Regulatory Authority will examine the applications submitted by both gas companies.
The regulator is expected to conduct hearings and review the companies’ financial requirements, operating expenses, and proposed tariff calculations.
Following the hearings, OGRA will determine the appropriate revenue requirements and tariff recommendations under the applicable regulatory framework.
Any final consumer tariff changes will depend on the relevant approval and notification process.
Until an official decision is announced, the proposed increases should not be treated as confirmed new gas prices.
Gas Consumers Await Final Tariff Announcement
With winter approaching and demand for natural gas expected to rise, the applications have brought renewed attention to Pakistan’s energy costs.
Sui Northern and Sui Southern maintain that higher expenses and additional LNG requirements have increased the financial pressure on their operations.
For consumers, the key question is whether these proposals will eventually result in higher monthly gas bills.
The outcome will become clearer after OGRA completes its review and the relevant authorities announce their decisions.
For now, the gas companies have requested tariff increases, but the final rates and their impact on consumers remain undecided.