Pakistan Gas Utilities Seek Steep Tariff Hikes to Plug Rs77b Shortfall
- OGRA hearings next month as inflation-hit consumers face new pressure
Pakistan’s two state-run gas utilities are seeking sharp price hikes for fiscal 2025–26 to cover a combined Rs77 billion revenue gap, a move that risks stoking inflation already weighing on households and industry.
Sui Northern Gas Pipelines Ltd. (SNGPL) has asked regulators to raise its average prescribed price by Rs189 to Rs1,955.50 per MMBTU, citing higher imported LNG costs, operating expenses, and depreciation. The northern utility projects a Rs52.96 billion shortfall for the year.
Sui Southern Gas Co. (SSGC) is seeking a Rs125.41 per MMBTU increase to Rs1,783.96 per MMBTU, driven by rising gas purchase costs and financial charges. It also wants to recover Rs34.25 billion in prior-year shortfalls, taking its aggregate claimed price to Rs1,962.55 per MMBTU.
Both utilities filed petitions with the Oil and Gas Regulatory Authority on Oct. 15. OGRA will hold hearings on Nov. 7 in Lahore for SNGPL and Nov. 11 in Karachi for SSGC.
SNGPL included Rs316.64 per MMBTU in RLNG service costs and a Rs2.08 subsidy for its LPG AirMix project, while SSGC built in Rs57.87 per MMBTU in RLNG costs and a Rs13.48 subsidy.
The utilities argue the hikes are unavoidable as gas prices remain tied to international crude benchmarks under federal supply agreements.
If approved, the increases would add to Pakistan’s already rising energy tariffs, threatening to fan cost-push inflation and deepen strain on consumers and manufacturers.
