ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Tuesday approved an average 6.6 per cent increase in prescribed natural gas prices to meet the Rs890 billion revenue requirement of Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company Ltd (SSGCL) for the fiscal year 2025-26.
In its late-night determination sent to the federal government, Ogra set SNGPL’s prescribed price at Rs1,895 per million British thermal unit (mmBtu), marking a Rs117 per unit increase from the current Rs1,778, to cover a projected Rs43 billion revenue shortfall.
In contrast, SSGCL’s prescribed price was reduced by Rs104 to Rs1,659 per mmBtu, aligning with its revenue requirement of Rs354 billion for the next fiscal year.
As average consumer gas prices currently stand at Rs1,770 per unit, the government may need to raise rates by Rs125 per unit—or about 7 per cent—to Rs1,895 from July 1 to ensure a uniform tariff nationwide, based on the higher SNGPL cost.
The difference between SSGCL’s lower prescribed price and the higher applicable consumer tariff would be treated as a gas development surcharge, a key revenue stream for provincial governments.
Ogra has forwarded the determinations to the federal government for final category-wise pricing under Section 8(3) of the Ogra Ordinance. The government retains discretion to adjust consumer rates without affecting the regulator’s revenue targets.
