In welcome news for gas consumers, the Oil and Gas Regulatory Authority (OGRA) has officially reduced imported Liquefied Natural Gas (LNG) prices for July, reflecting recent movements in global LNG markets. The latest notification shows a drop in tariffs for both major gas utilities, offering moderate relief during a period of sustained energy challenges.
For Sui Northern Gas Pipelines Limited (SNGPL), OGRA has announced a price cut of 21 cents, lowering the new tariff from $11.78 per MMBTU in June to $11.57 per MMBTU for July. Similarly, the price for Sui Southern Gas Company (SSGC) customers has been reduced by 29 cents, bringing the tariff down from $10.86 to $10.57 per MMBTU this month.
The reduction translates to a decrease ranging from 1.72% to 2.68%, depending on the region and the utility. According to OGRA, these monthly adjustments are aligned with fluctuations in the international LNG market, ensuring that domestic tariffs reflect global price trends and Pakistan’s active LNG import contracts.
This move comes at a time when households and industries are facing economic pressure from overall high energy costs. Even though the price drop is modest, it provides slight relief to end-users who rely heavily on imported LNG to meet daily and industrial needs.
Pakistan’s energy sector has been increasingly dependent on LNG imports in recent years, especially during peak summer and winter months when local demand surges. By adjusting prices monthly, OGRA aims to keep consumer tariffs in line with international market movements, ensuring some level of stability despite volatile global energy prices.
Energy analysts note that while global LNG prices have seen short-term corrections, long-term contracts and infrastructure constraints still limit how much relief can be passed on to local consumers. Nevertheless, these cuts are significant for industries and households budgeting monthly expenses.
The revised LNG prices will remain in effect throughout July unless global price shocks force another adjustment in the following month. As Pakistan continues to navigate energy supply challenges and fluctuating import costs, OGRA’s pricing mechanism remains an essential tool for managing price impacts on consumers.
