Islamabad, May 23, 2025: In a significant move impacting millions across Pakistan, the Oil and Gas Regulatory Authority (OGRA) has recommended a new structure for gas price adjustments across Sindh, Balochistan, Punjab, Khyber Pakhtunkhwa (KP), and Islamabad.
The updated pricing—varying regionally—comes as part of the regulatory body’s strategy to balance fiscal pressures for 2025-26, while grappling with rising global fuel import costs and the burden of maintaining uninterrupted gas supply.
Gas Price Shift: Winners and Losers
For the southern regions of Sindh and Balochistan, consumers may breathe a sigh of relief as OGRA has proposed a gas price reduction of Rs 103.95 per MMBTU for Sui Southern Gas Company (SSGC) customers.
In contrast, Punjab, KP, and Islamabad are expected to face steeper energy bills, with a proposed hike of Rs 116.90 per MMBTU for Sui Northern Gas Pipelines Limited (SNGPL) users.
Industry analysts tie the increase for SNGPL to the soaring cost of RLNG (Regasified Liquefied Natural Gas) imports—highlighting the vulnerability of energy pricing to international market fluctuations.
Financial Gaps Drive Pricing Strategy
According to OGRA’s internal brief, SNGPL requires Rs 527.55 billion, while SSGC needs Rs 319.78 billion to maintain fiscal sustainability in the upcoming financial cycle.
The proposed gas price changes are designed to help bridge these financial gaps while ensuring smooth supply operations.
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OGRA has urged the federal government to implement category-wise pricing, potentially shielding low-income households while shifting a greater share of the burden to high-usage or industrial consumers. However, the final decision lies with the government, which must first approve the suggested adjustments before OGRA can issue a formal notification.
What’s Next for Consumers?
If approved, the new gas pricing will come into effect from January 1, 2025. Consumer rights groups are watching closely to see how the government categorizes protected users, as that will determine who ultimately bears the brunt of the changes.
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K-Electric’s Fuel Charge Update Also Under Review
Meanwhile, in the power sector, NEPRA has completed its hearing on K-Electric’s request for a Fuel Charge Adjustment (FCA) for March 2025. The utility has sought a Rs 5.02 per unit relief, citing fluctuations in global energy markets. NEPRA is expected to finalize and issue the applicable FCA in upcoming billing cycles.
