ISLAMABAD – The Oil and Gas Regulatory Authority (OGRA) has officially announced a nationwide gas price hike, effective from July 1, 2025, impacting a wide range of consumers including households, power plants, and industrial sectors, ARY News reported. The increase comes as part of the government’s ongoing efforts to align energy pricing with cost recovery requirements and structural benchmarks agreed with the International Monetary Fund (IMF). While tiered rates for domestic consumers remain unchanged, fixed monthly charges will rise significantly. Protected residential users will see their monthly bills increase from Rs 400 to Rs 600, while non-protected users will face a jump from Rs 1,000 to Rs 1,500. High-usage households consuming more than 1.5 cubic meters of gas monthly will now pay Rs 2,400, up from Rs 2,000.
The revised tariff model was approved by the Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb. The ECC emphasized the need to maintain affordability for low-income households while ensuring the financial sustainability of the gas supply chain. Additionally, a 10% tariff increase has been announced for gas-powered power plants and industrial users, reinforcing the IMF’s directive to reduce untargeted energy subsidies and rationalize sectoral pricing. However, in a move to protect vital economic segments, OGRA has kept gas prices unchanged for commercial users, CNG stations, tandoors, cement, and fertilizer sectors.
This gas price hike is a key component of the government’s broader fiscal strategy aimed at curbing circular debt in the energy sector and securing a more stable and efficient gas supply. In a contrasting development, OGRA also announced a reduction in Liquefied Petroleum Gas (LPG) prices by Rs 4.62 per kilogram, bringing the rate down to Rs 240.43/kg, offering some limited relief amid rising energy costs.
