Gas utilities push for higher tariff
ISLAMABAD: The two gas utilities — SNGPL and SSGCL — have sought more than 10.7 per cent and 7.6pc increase in their prescribed gas prices, respectively, to meet their revenue requirements for the current fiscal year.
The prescribed gas prices are revised twice a year under the law, following determinations by the Oil and Gas Regulatory Authority (Ogra), based on which the government sets consumer gas prices for various consumer categories. The government has also committed to the International Monetary Fund (IMF) to provide timely biannual notifications of gas rates to avoid a further build-up of circular debt, which has already exceeded Rs3 trillion.
Ogra has announced a public hearing on Nov 7 to consider a petition filed by the Sui Northern Gas Pipeline Ltd for a 10.7pc hike or Rs189 per million British thermal unit (mmBtu). SNGPL demanded the existing prescribed price of Rs1766.50 per mmBtu be increased to Rs1,955.50 per mmBtu for current fiscal year.
The Lahore-based SNGPL claimed a Rs53bn shortfall in its revenue requirements for the current fiscal year, as well as an additional Rs582m subsidy for LPG air-mix plants. On top of that, SNGPL has also claimed an additional Rs317 per mmBtu cost on account of RLNG diversion.
Public hearing fixes for Nov 7 as SNGPL and SSGCL aim to cover shortfalls and imported gas costs
The combined increase in gas rates has thus been estimated at Rs506 per mmBtu, roughly taking the total cost increase by 28.7pc to Rs2,272 per mmBtu. It said the company had included the cost of RLNG diverted volumes to indigenous gas consumers as part of the cost of gas in light of the ECC decision ratified by the federal cabinet on Oct 30, 2023.
This is despite SNGPL earlier claiming a reduction in sales volumes, mainly due to an increase in gas rates over the past two years, which made it unaffordable for consumers, but now wants a further increase in the prescribed prices.
On the other hand, Sui Southern Gas Company Ltd requests Rs125.41 per mmBtu or a 7.6pc increase in its prescribed price. It demanded that the existing price of Rs1,658.56 should be increased to Rs1,783.96 for the current fiscal year.
The Karachi-based SSGCL estimated a shortfall of Rs24bn in its revenue requirements for FY26. In addition, it claimed another “unrecouped” shortfall of Rs34.3bn since FY23. It demanded that it be included in the revenue requirement for next year, thereby raising the total demand for the prescribed price to Rs1,962.55 per mmBtu for 2025-26.
SSGCL has claimed an additional amount of Rs57.87 per unit on account of RLNG cost of service, which is also separately notified monthly by Ogra. This takes the total cost to Rs 2,021 per unit.
Published in Dawn, October 29th, 2025
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