- SNGPL’s existing average prescribed gas price stands at Rs1,702 per MMBtu.
- SNGPL includes Rs60.147b in LNG service costs in its proposed price.
- LNG service costs estimated at Rs471.16 per MMBtu, according to SNGPL.
ISLAMABAD: Pakistan’s two major gas utilities, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), have approached the Oil and Gas Regulatory Authority (OGRA) to seek increases in their average prescribed gas prices for the current fiscal year, effective retrospectively from July 1.
In separate petitions submitted to the regulator, SNGPL has sought an increase of Rs10 per million British thermal units (MMBtu), proposing to raise its average prescribed price to Rs1,712.40 from the existing Rs1,702.
SSGC, meanwhile, has requested an increase of Rs366.75 per MMBtu, seeking to raise its average prescribed price to Rs2,071.75.
SNGPL has included Rs60.147 billion in liquefied natural gas (LNG) service costs in its proposed price. The company estimates the cost of LNG services at Rs471.16 per MMBtu.
In its petition, SNGPL said limited availability of locally produced gas during the winter would require additional arrangements to meet demand. It estimates that 16 LNG cargoes would be needed during the season to maintain supplies.
Both companies have cited an increase in international crude oil prices, arguing that higher oil prices would also push up the cost of gas.
The petitions come as Pakistan grapples with a persistent energy supply challenge, driven by declining domestic gas production, reliance on imported LNG and rising seasonal demand.
The country’s indigenous gas output has been falling as mature fields deplete, increasing the need for imported supplies to bridge the gap between production and consumption.
The growing dependence on LNG has also exposed Pakistan’s energy sector to international price volatility and supply disruptions.
Uncertainty surrounding shipments from Qatar, amid the regional crisis and disruptions to LNG supplies, has further complicated the government’s efforts to secure sufficient fuel ahead of winter.
The supply situation has already prompted authorities to introduce gas load management for domestic consumers.
In September, household supplies were restricted to designated morning, afternoon and evening cooking hours because the system could not meet round-the-clock demand.
The power sector also relies on imported gas, including regasified LNG (RLNG), for electricity generation, The News reported on September 27, 2026.
The government is also preparing a winter gas management plan for November 2026 to February 2027, under which domestic consumers would receive priority, while supplies to industry, captive power plants, fertiliser producers and compressed natural gas (CNG) stations could be curtailed in the event of severe shortages or inadequate LNG deliveries.
The Petroleum Division has estimated that 24 LNG cargoes would be required to meet winter demand on the SNGPL network, including supplies for households and power generation.
The financial strain on the sector is another concern. Gas-sector circular debt increased by Rs344 billion to Rs3.631 trillion by June 30, 2026, according to figures presented by the Petroleum Division in the National Assembly.
The accumulation of unpaid liabilities has compounded the financial difficulties of gas utilities and added to the challenges of maintaining a sustainable supply system, according to a The News report published on October 20.
The latest petitions also follow a period of uncertainty over Pakistan’s LNG supplies and the cost of meeting seasonal demand. In August, OGRA raised re-gasified liquefied natural gas (RLNG) prices by up to 34.6% for July, following the arrival of only five LNG cargoes that month, according to an earlier Geo.tv report.
The prescribed price is the average rate determined by OGRA to meet a gas utility’s estimated revenue requirement. It is distinct from the category-wise prices charged to consumers, which require government advice and notification.
In July, the government retained existing consumer gas tariffs despite OGRA’s lower prescribed-price determinations for the two utilities. The regulator had set SNGPL’s prescribed price at Rs1,718.96 per MMBtu and SSGC’s at Rs1,691.24 for FY2026-27, Geo.tv reported earlier.
OGRA will hold hearings on the latest petitions before making its determination. Any change in consumer gas prices will depend on the subsequent government decision and notification.
