Thousands of households connected to Sui Northern Gas Pipelines Limited’s LNG-based network have received unusually high gas bills this month.
The increase follows a sharp rise in international LNG prices. Rates climbed to around Rs7,200 per MMBTU last month from nearly Rs3,700 previously.
SNGPL links charges for LNG-based domestic connections to the cost of imported gas. Therefore, international price fluctuations can quickly affect household bills.
Sources attributed the latest surge to renewed conflict between the United States and Iran. The tensions disrupted global energy markets and pushed LNG prices higher.
Despite ongoing market volatility, SNGPL used the elevated rate recorded during the relevant period for its latest billing cycle. Consequently, affected consumers faced almost double their previous charges.
LNG Network Exposes Households to Price Volatility
The affected connections emerged after the federal government approved LNG-fed networks for domestic consumers.
Under the scheme, SNGPL installed dedicated meters and provided thousands of new connections across its service areas. The initiative aimed to offer an alternative supply route amid Pakistan’s wider natural gas shortage.
However, the arrangement has now exposed consumers directly to international LNG price movements.
The latest bills have renewed concerns about the sustainability of linking household energy costs with volatile global benchmarks.
Consumers and industry observers are also questioning the absence of a clear mechanism to protect households from sudden international price shocks.
The development highlights the challenges of relying on imported LNG for domestic energy needs. It also underscores the potential financial risks consumers face when global energy markets experience sudden disruptions.
