ISLAMABAD – In a significant move, Sui Northern Gas Pipelines Limited (SNGPL) has announced a 39% hike in gas prices, citing financial sustainability and uninterrupted supply as the key reasons behind the decision. The increase comes at a time when electricity tariffs are being reduced, creating a mixed outlook for utility consumers.
According to SNGPL officials, the price hike includes a surcharge aimed at offsetting delayed payments categorized under circular debt. The company says the surcharge is essential to manage its cash flow and meet growing operational demands.
A spokesperson for SNGPL further explained that the adjustment is partly a result of decreased gas consumption by captive power plants (CPPs), which are being encouraged by the government to shift their energy load to the national electricity grid. This shift has altered gas demand dynamics, placing additional financial pressure on the utility.
Moreover, the spokesperson revealed that a substantial 51% of the increase is attributed to the high cost of supplying imported re-gasified liquefied natural gas (RLNG) to domestic consumers.
Despite the steep hike, SNGPL maintains that its operational costs remain relatively low, accounting for just 4% to 6% of its total revenue.
The decision is expected to have a ripple effect across households and industries already grappling with rising living costs and economic uncertainty. However, officials insist the hike is necessary to stabilize the gas supply system and reduce fiscal stress caused by unresolved circular debt.
