The Oil and Gas Regulatory Authority (Ogra) has announced an around 15% increase in the price of Regasified Liquefied Natural Gas (RLNG) at the distribution stage for July.
The revised prices apply to the country’s two Sui gas companies. According to the notification, the increase mainly resulted from expensive spot market LNG purchases made during supply disruptions linked to the US-Iran conflict.
As global supply tightened, Pakistan had to secure LNG cargoes at higher prices to meet domestic demand.
RLNG Prices Continue Rising
The latest increase reflects a sharp upward trend in RLNG prices during recent months.
According to the revised notification, RLNG prices for July are nearly 15% higher than in June.
In addition, prices are almost 56% higher than those recorded in March and around 73% above February levels.
The continued increase has significantly raised fuel costs for electricity generation across the country.
Power Generation Costs Increase
The higher RLNG prices have also increased the cost of electricity generation.
Fuel costs for RLNG-based power generation reached Rs31 per unit in May.
By comparison, the same cost stood at Rs13.72 per unit in April.
Consequently, higher LNG import costs are placing additional financial pressure on Pakistan’s energy sector.
New RLNG Prices for SNGPL and SSGCL
Ogra revised RLNG prices for both Sui gas companies at the transmission and distribution stages.
SNGPL Prices
For Sui Northern Gas Pipelines Limited (SNGPL), the transmission-stage RLNG price increased by 14.85%.
The revised rate rose to $17.94 per million British thermal units (mmBtu) from $15.62 per mmBtu in June.
Earlier, the transmission price stood at $10.45 per mmBtu in February.
Meanwhile, the distribution-stage RLNG price increased by 14.94%.
The new rate reached $19.5228 per mmBtu, compared with $16.9847 per mmBtu in June.
SSGCL Prices
For Sui Southern Gas Company Limited (SSGCL), the transmission-stage RLNG price increased by 16%.
The revised rate climbed to $16.368 per mmBtu, up from $14.093 per mmBtu in June. Previously, it stood at $9.47 per mmBtu in December 2025.
Similarly, the distribution-stage price increased by 16.17%. The new price reached $18.64 per mmBtu, compared with $16.042 per mmBtu in June. In December 2025, the same price stood at $10.77 per mmBtu.
Distribution Losses Continue Adding to Costs
Apart from expensive LNG imports, distribution costs continue increasing RLNG prices for consumers. SNGPL currently reports distribution-stage system losses of almost 9%.
Previously, those losses were 7.47% in October. Meanwhile, SSGCL’s distribution-stage system losses stand at 12.55%.
A few months earlier, those losses were approximately 10.6%. These losses, along with supply chain expenses, continue increasing the final RLNG price paid by consumers. As a result, the distribution price remains significantly higher than the average delivered LNG import price.
Spot Market Purchases Push Import Costs Higher
Pakistan imported four LNG cargoes during July. Three cargoes arrived under long-term agreements between Pakistan State Oil (PSO) and QatarGas.
These cargoes carried an average price of approximately $13.144 per mmBtu. In comparison, the average price under the same arrangement stood at $9.2 per mmBtu in June.
Meanwhile, Pakistan LNG Limited (PLL) imported one LNG cargo from the international spot market.
That cargo cost $19.134 per mmBtu, compared with $18.4 per mmBtu in June.
Because spot market purchases are generally more expensive, they contributed significantly to the latest RLNG price increase.
Why Pakistan Purchased LNG From the Spot Market
Pakistan State Oil holds a long-term agreement to import up to 11 LNG cargoes every month.
However, not all contracted cargoes arrived during the month.
According to available information, disruptions linked to the closure of the Strait of Hormuz and the suspension of gas operations affected cargo transportation from Qatar.
Consequently, Pakistan LNG Limited resumed LNG imports after remaining largely inactive for nearly two and a half years.
The company has recently been importing approximately one LNG cargo each month on short notice, usually within 48 to 72 hours.
These emergency purchases helped address electricity shortages but also increased overall import costs.
Part of the LNG Supply Allocated to K-Electric
Ogra also stated that PLL’s imported cargo contains approximately 3.2 million mmBtu of LNG. According to the allocation plan, 2.4 million mmBtu will be supplied to K-Electric. The remaining 0.8 million mmBtu will be delivered to SNGPL.
As Pakistan continues relying on both long-term contracts and expensive spot purchases, RLNG prices may remain under pressure if global supply disruptions persist.
