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The Sui gas companies have filed a petition seeking a 5% increase in prescribed gas prices for Fiscal Year 2026, according to a report by Optimus Capital Management. The proposed revision is based on currency depreciation, higher Regasified Liquefied Natural Gas (RLNG) diversion, and increased infrastructure repair costs.
The companies outlined several key reasons behind the requested hike:
- PKR depreciation has slightly increased the domestic gas cost for both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC).
- RLNG diversion is estimated at 81,303 billion British Thermal Units (BBTUs), up 2% from FY26 Estimated Revenue Requirement (ERR) decision and 65% higher year-on-year, due to lower power sector offtake and shifting of captive power plants to the grid.
- Transmission and distribution (T&D) expenses have risen because of flood-related repairs and expansion of RLNG connections.
- SSGC has also requested a PKR 34 billion Prior Year Adjustment (PYA) for FY24.
Decline in Sui Gas Offtakes
SNGPL reported a 150–200 Million Cubic Feet per Day (MMCFD) reduction in power sector offtakes from its committed demand of 550 MMCFD. Captive consumption has also dropped from 190 MMCFD to 60 MMCFD, based on 1QCY25 data.
The company expects 269 MMCFD gas suspension in FY26, with ~380 MMCFD curtailment projected during 2HFY26.
Sui Gas Volumes and Cost Comparison (FY26)
| Parameter | SNGPL | SSGC | Total |
|---|---|---|---|
| Decision ERR Volumes (BBTU) | 281,999 | 213,546 | 495,545 |
| Petition RERR Volumes (BBTU) | 280,203 | 191,773 | 471,976 |
| Decision ERR Cost (PKR/MMBTU) | 1,702 | 1,310 | 1,533 |
| Petition RERR Cost (PKR/MMBTU) | 1,686 | 1,363 | 1,547 |
Economic Assumptions
| Parameter | Decision ERR FY26 | Petition RERR FY26 |
|---|---|---|
| Oil Prices ($/bbl) | 75 | 73 |
| PKR/USD | 280 | 284 |
Prescribed Prices
| Parameter | SNGPL | SSGC | Average/Total |
|---|---|---|---|
| Prescribed Prices (w/out PYA) | 1,895 | 1,659 | 1,793 |
| Petition Prices (w/out PYA) | 1,955 | 1,784 | 1,886 |
Price Impact May Remain Limited
Analysts believe the actual increase may remain insignificant or nil, as the Oil and Gas Regulatory Authority (OGRA) often disallows major cost components such as finance charges, UFG losses, PYAs, and revenue shortfalls in Balochistan.
