ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has issued a revised determination on the recovery of Rs60 billion in RLNG price adjustments for the period April 2015 to June 2022, easing the financial burden on consumers by spreading payments over 24 months and waiving the late payment surcharge.
Under the new plan, RLNG consumers — including the power sector, export-oriented industries, fertiliser manufacturers and CNG operators — will pay their respective shares of the Rs59.8 billion differential without any surcharge. Ogra added that in cases of genuine hardship, Sui Northern Gas Pipelines Ltd (SNGPL) may offer customised installment plans upon request. However, once an arrangement is finalised, any delay or default will attract a late payment surcharge under SNGPL’s policy.
The revised determination follows long-standing disputes stemming from Ogra’s use of provisional RLNG prices between 2015 and 2020. Once actual (true-up) prices were finalised, the regulator calculated a differential of nearly Rs60 billion — including Rs51.3 billion in gas price adjustments and around Rs8 billion in GST.
Backlash Over Sudden Billing
The controversy escalated in August 2025 when SNGPL issued revised bills demanding full payment of the differential in one go, sparking strong backlash across industrial, power and CNG sectors. Nearly 2,950 industrial units and 1,200 CNG operators objected, noting that retrospective charges could not be passed on for products already sold or exported. Many stakeholders also referred to previous stay orders granted by courts against similar recoveries.
Responding to public pressure, Prime Minister Shehbaz Sharif ordered an independent inquiry, to be led by former federal secretary Shahid Khan. Sector-wise, SNGPL allocated liabilities of Rs40 billion to the power sector, Rs14.4 billion to industry, Rs3.8 billion to CNG operators and Rs2.4 billion to the fertiliser sector.
While the Peshawar High Court granted a stay to the industrial sector, the Lahore High Court dismissed a similar plea after Ogra assured that it would revisit its earlier decision. Following a fresh hearing, the regulator has now issued its revised determination.
Industry Still Unhappy
Reacting to the decision, All Pakistan Textile Mills Association (APTMA) Chairman Kamran Arshad said the revised order “is not up to the mark.” He acknowledged the waiver of late payment surcharge, which Ogra had earlier signalled informally, but stressed that the core concerns of industry remain unresolved.
Arshad highlighted that over 100 textile units have closed due to unaffordable gas and electricity tariffs, coupled with heavy taxation. He said imposing retrospective RLNG adjustments is legally questionable and will deepen the financial strain on industries already struggling to remain competitive.
The APTMA chairman criticised Ogra’s prolonged use of provisional pricing and called for a transparent explanation of why billions of rupees in adjustments were accumulated over years without timely true-ups. He added that APTMA’s legal team is reviewing the revised determination and the association remains prepared to challenge it in court if needed.
Story by Khalid Mustafa
