The Oil and Gas Regulatory Authority (OGRA) on Monday approved a reduction of up to 8% in gas tariffs for consumers across Pakistan, with the final implementation subject to government approval.
The move follows OGRA’s review of the Estimated Revenue Requirement (RERR) for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for the fiscal year 2025-26.
Under the proposed revision, SNGPL tariffs will decrease to Rs1,804.08 per metric million British thermal unit (mmbtu), reflecting a 3% cut, while SSGCL tariffs will drop to Rs1,549.41/mmbtu, representing an 8% reduction.
OGRA stated that the decision was based on a careful review of both companies’ revenue requirements, along with rationalisation of demand through optimisation of costs and revenues. Deferred cargoes from Pakistan LNG Limited have also been factored in to benefit consumers.
The authority further adjusted Rs13,565 million for SNGPL and Rs47,315 million for SSGCL against previous shortfalls and accumulated gas circular debt, in line with directives from the Federal Cabinet dated July 1, 2024. OGRA has sought the federal government’s advice on category-wise gas sale prices, with any revisions to be officially notified. Until then, existing category-wise prices remain in effect.
Separately, Petroleum Minister Ali Pervez Malik directed gas utilities to ensure uninterrupted supply during the winter season. During a meeting on seasonal gas load management, the minister emphasised the importance of taking all necessary measures to facilitate consumers and confirmed that instructions had been issued to the gas companies.
Managing directors of SNGPL and SSGC briefed the minister on nationwide gas availability and reviewed the issuance of RLNG domestic connections. Malik noted that domestic gas supply this year is significantly better than last winter, underscoring the efforts to maintain steady availability amid increased seasonal demand.
The tariff reduction, combined with improved supply management, is expected to provide relief to consumers while maintaining stability in the natural gas sector during the peak winter months.
