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Pakistan’s energy regulator has approved another increase in natural gas prices, with the move aimed at meeting the massive revenue requirements of SNGPL and SSGCL for the next fiscal year. The decision signals continued tariff adjustments as the government works to stay aligned with IMF conditions.
The Oil and Gas Regulatory Authority (Ogra) confirmed a hike of up to 7% in prescribed gas prices for 2025-26, raising the combined revenue target of both gas utilities to Rs. 886 billion. According to the determination shared with the federal government, SSGCL’s revenue requirement has been revised to Rs. 370 billion, pushing its prescribed price to Rs. 1,777 per mmBtu, a 7.11% increase. Meanwhile, SNGPL’s requirement is set at Rs. 516 billion, with a revised prescribed price of Rs. 1,853 per mmBtu, up 5% from the previous fiscal year.
Earlier this year, the government had already implemented a steep 50% rise in fixed gas charges and increased sale rates for industries, power producers, and bulk consumers moves expected to burden consumers with an additional Rs. 85 billion to satisfy IMF benchmarks. With Ogra’s new determination in place, the government must now decide whether to raise end-user tariffs further or restructure fixed charges.
A senior official, while explaining the impact of the decision, noted,
“All consumer categories must pay at least the average cost of service to prevent the gas sector’s debt from growing further.”
Ogra reminded the government that timely biannual adjustments are necessary to stop circular debt already exceeding Rs. 3 trillion from rising. The federal cabinet has 40 days to respond and notify the revised rates in the official gazette.
