ISLAMABAD: Pakistan’s two state-owned gas utilities — Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC) — have sought substantial increases in their average prescribed gas prices for the fiscal year 2025-26, citing higher operational costs, RLNG diversion, and returns on assets.
According to sources, SNGPL has proposed an increase of Rs189 per MMBTU, while SSGC has requested a hike of Rs125 per MMBTU in their respective average prescribed prices. Both petitions have been filed for the determination of their Estimated Revenue Requirements (ERR) under Section 8(2) of the OGRA Ordinance, 2002.
If approved, SNGPL’s average prescribed price will rise from Rs1,766.50 to Rs1,955.50 per MMBTU, whereas SSGC’s price will increase from Rs1,658.56 to Rs1,783.96 per MMBTU for FY 2025-26.
SNGPL, which caters to gas consumers in Punjab and Khyber Pakhtunkhwa, has projected total sales of 280,203 BBTU for the next fiscal year. The company’s major cost components include the cost of gas sold at Rs853.65 per MMBTU, RLNG cost to be diverted to indigenous consumers at Rs832.66 per MMBTU, and operating expenses of Rs131.95 per MMBTU. It has further recorded depreciation at Rs88.32 per MMBTU and return on assets at Rs114.53 per MMBTU, while UFG adjustment and other operating income have been reflected as deductions.
Meanwhile, SSGC, serving Sindh and Balochistan, has projected its total gas sales at 191,773 BBTU for FY 2025-26. The company has estimated the cost of gas sold at Rs1,362.69 per MMBTU, operating costs at Rs185.13 per MMBTU, depreciation at Rs54.35 per MMBTU, and return on assets at Rs148.91 per MMBTU. Its petition also accounts for other operating income of Rs(44.81) per MMBTU and a subsidy of Rs13.48 per MMBTU for the LPG Air Mix Project.
As per sources,
Both utilities have argued that the proposed revisions are necessary to cover rising operational and gas procurement costs and to maintain system integrity and financial sustainability amid volatile RLNG import prices and mounting inflationary pressures.
OGRA has scheduled separate public hearings for both petitions next month. The SSGC hearing will be held on November 19, 2025, in a private hotel, Karachi, while SNGPL’s hearing is set for November 21, 2025, in a private hotel, Lahore.
Ogra has I voted stakeholders, consumers, and industry representatives to participate and share their input before the regulator finalizes its decisions.
Once OGRA concludes the hearings, it will determine and forward the prescribed prices to the federal government for approval and notification. The final consumer gas sale prices may vary depending on the government’s policy decisions on subsidy allocations and cross-sectoral pricing adjustments.
The proposed gas price hikes, if approved, could have broad economic implications, potentially affecting domestic, industrial, and commercial users nationwide.
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