ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) recommended a reduction in natural gas tariffs for consumers, proposing a 3% cut for Sui Northern Gas Pipelines Limited (SNGPL) and a 7% cut for Sui Southern Gas Company (SSGC) for the current fiscal year.
Under the determination, SNGPL’s average prescribed price has been provisionally set at Rs1,804.08 per million British thermal unit (mmbtu), while SSGC’s tariff is recommended at Rs1,549.41/mmbtu.
According to Ogra, the move is in line with its mandate to protect consumers’ interests and promote fiscal discipline.
The authority stated that the review of estimated revenue requirements (RERR) for both SNGPL and SSGC involved careful rationalisation, including optimisation of costs and revenues.
The impact of deferred cargoes in the case of Pakistan LNG Limited was also considered for the benefit of consumers.
The regulator clarified that no final change in gas prices has been approved yet, urging media outlets to avoid misreporting.
“Since existing revenues at SNGPL and SSGC networks are meeting the revenue requirement for FY 2025-26 as determined by Ogra on November 24, 2025, no change in gas prices has been finalised,” the authority said in a statement.
The federal government has been requested to advise on category-wise sale prices. Until such guidance is issued, the existing natural gas tariffs will remain in effect.
Ogra also adjusted previous shortfalls in the gas circular debt, amounting to Rs13.565 billion for SNGPL and Rs47.315 billion for SSGC, in pursuance of a federal cabinet directive dated July 1, 2024.
The authority emphasised that the recommended reductions are aimed at ensuring consumers benefit from efficient operations of gas utilities while maintaining fiscal balance and affordability.
