The federal government has decided not to reduce gas prices for consumers during the fiscal year 2026–27 despite the Oil and Gas Regulatory Authority (OGRA) lowering the prescribed gas prices for the country’s two state-owned gas utilities.
According to officials from the Petroleum Division, OGRA has reduced the average prescribed gas price for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) from Rs. 1,793 per MMBtu to Rs. 1,705 per MMBtu.
Under the revised determination, OGRA has set SNGPL’s prescribed gas price at Rs. 1,719 per MMBtu, while SSGC’s prescribed price has been fixed at Rs. 1,691 per MMBtu.
However, the government has decided to maintain existing consumer gas tariffs throughout FY2026–27, meaning households, commercial consumers, and industries will not receive any reduction in their gas bills.
Officials said the decision was taken to improve the financial position of both gas utilities. Under the current tariff structure, SNGPL is expected to record a surplus of around Rs. 44 billion, while SSGC is projected to generate a surplus of approximately Rs. 2.5 billion.
Sources said the government has also informed the International Monetary Fund (IMF) that it will not transfer the benefit of OGRA’s prescribed price reduction to consumers and will continue with the existing gas tariff structure.
The reduction in prescribed prices was mainly linked to the removal of RLNG diversion costs after QatarEnergy declared force majeure on LNG supplies to Pakistan earlier this year.
Officials added that gas companies may seek revised tariff determinations after LNG imports from Qatar return to normal levels, which could influence future prescribed gas prices.
