Thousands of households connected to Sui Northern Gas Pipelines Limited’s (SNGPL) LNG-based network have received unusually high gas bills this month, as the company passed on a sharp rise in international LNG prices directly to consumers.
The billing spike stems from a surge in global LNG rates, which climbed to Rs7,200 per MMBTU last month, up from roughly Rs3,700 per MMBTU that consumers were paying before the recent price rally.
SNGPL bases charges for LNG-based domestic connections on the prevailing cost of imported gas, meaning any fluctuation in the international market is reflected almost immediately in consumer bills.
Sources attributed the price swing to renewed conflict between the United States and Iran, which unsettled global energy markets and drove LNG prices sharply higher over a short period.
Despite the volatility and the absence of price stability in the international market, SNGPL used the elevated rate recorded during that window as the basis for last month’s billing cycle, leaving consumers to absorb nearly double their previous charges.
The LNG-based connections at the centre of the controversy were rolled out after the federal government approved a plan allowing domestic consumers to receive gas through LNG-fed networks.
Under that scheme, SNGPL installed dedicated meters and extended new connections to thousands of households across its service area, presenting it as an alternative supply route amid Pakistan’s broader natural gas shortfall.
That arrangement has now left affected consumers directly exposed to swings in the global LNG market, a risk that has materialised in the form of the latest bills.
With no clear mechanism to shield domestic users from short-term price shocks, the episode has renewed concerns among consumers and industry observers over the sustainability of linking household energy costs to volatile international benchmarks.
