ISLAMABAD: In an unprecedented move, the Petroleum Division has engaged leading audit firm KPMG to determine which categories of domestic gas consumers will face a price hike starting July 1, 2025, under a broader reform agenda aligned with IMF conditions.
A senior Energy Ministry official confirmed that it is the first time an external consultancy has been tasked with advising the government on sale gas price adjustments. KPMG’s recommendations will guide which consumer slabs should absorb the increase, ensuring zero financial shortfall for state-owned gas utilities.
This development follows Ogra’s May 20, 2025, price determination for the fiscal year 2025-26. The regulator raised the prescribed gas price for Sui Northern Gas Pipelines Limited (SNGPL) to Rs1,895.50 per MMBtu, citing rising RLNG consumption, while reducing the price for Sui Southern Gas Company (SSGC) consumers by Rs103.95 per MMBtu to Rs1,658.55 per MMBtu.
Despite SNGPL facing a Rs40 billion shortfall, SSGC remains in surplus. The government must implement revised sale prices by June 28, 2024, in line with IMF directives to eliminate circular debt and ensure financial sustainability of gas utilities.
Currently, a cross-subsidy of Rs140 billion is being provided by industrial, commercial, captive power, CNG, and high-end domestic users to offset the cost for protected consumers and lower consumption slabs.
KPMG’s proposals will be submitted to the Economic Coordination Committee (ECC) for approval, followed by final endorsement from the Prime Minister.
Story by Khalid Mustafa
