The Oil and Gas Regulatory Authority (OGRA) has approved revised gas prices for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for fiscal year 2025-26, proposing an average 6.6% increase that would generate an additional Rs890 billion in revenue.
For SNGPL, OGRA allowed an increase of Rs116.90 per MMBTU, raising its prescribed price to Rs1,895/MMBTU to cover a projected Rs43 billion revenue shortfall, largely due to rising RLNG costs. Conversely, SSGCL saw a Rs103.95/MMBTU reduction to Rs1,659/MMBTU. The federal government must now issue category-wise consumer prices within 40 days, with current rates remaining effective until notification.
OGRA highlighted that SNGPL’s financial strain stems from RLNG diversion commitments under 2023 cabinet decisions, urging immediate government review of gas supply policies. Industrial consumers are increasingly shifting to grid power or alternatives due to high tariffs, with power sector gas offtake dropping from 66% to 33%. The regulator warned that unmet RLNG contractual volumes could trigger heavy penalties.
Final consumer tariffs are expected to align with SNGPL’s higher prescribed price of Rs1,895/MMBTU, creating a Gas Development Surcharge from the differential with SSGCL’s lower rate. The government retains authority to adjust category-wise prices without altering OGRA’s revenue targets.
