Pakistan’s two state-owned gas utilities, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), have requested increases in their prescribed gas prices for FY2026-27, potentially making gas more expensive for consumers.
SNGPL has sought an increase of Rs. 10 per million British thermal units (MMBtu), raising its average prescribed price from Rs. 1,702 to Rs. 1,712.40 per MMBtu. Meanwhile, SSGCL has requested a significantly higher increase of Rs. 366.75 per MMBtu, proposing a revised average price of Rs. 2,071.75.
Both companies have asked the Oil and Gas Regulatory Authority (OGRA) to apply the proposed adjustments retrospectively from July 1, 2026.
SNGPL has also included Rs. 60.147 billion in liquefied natural gas (LNG) service costs in its application, estimating the LNG cost at Rs. 471.16 per MMBtu. The company said limited availability of locally produced gas during winter would require additional LNG supplies to meet demand.
According to its estimates, SNGPL will need 16 LNG cargoes to manage winter demand. Both gas utilities have also cited rising international crude oil prices as a reason for seeking higher prescribed rates.
OGRA will conduct hearings on the applications submitted by SNGPL and SSGCL before deciding whether to approve the proposed increases. The final decision will determine the revised prescribed gas prices for FY2026-27.
