Pakistan’s Oil and Gas Regulatory Authority (OGRA) has announced substantial relief for consumers by approving gas price reductions of up to 8 percent, rejecting the distribution companies’ initial proposals for steep increases.
Key Highlights of the Price Reduction
The regulatory body has forwarded its recommendations to the federal government for final approval. Sui Southern Gas Company (SSGC) consumers will benefit from an 8 percent average reduction, while Sui Northern Gas Pipelines Limited (SNGPL) customers will see a 3 percent decrease.
This decision comes as welcome news after gas distribution companies had requested increases of up to 28.62 percent, citing operational costs and infrastructure requirements.
New Gas Tariff Structure
Under the revised pricing framework, SNGPL’s average rate has been set at Rs1,804.08 per MMBTU (million British thermal units), while SSGC’s rate stands at Rs1,549.41 per MMBTU. These adjustments reflect OGRA’s comprehensive review of revenue requirements for the current fiscal year.
Financial Adjustments and Consumer Benefits
OGRA has approved significant financial adjustments—Rs13.565 billion for SNGPL and Rs47.315 billion for SSGC—in accordance with federal cabinet directives. The regulator has also factored in savings from Pakistan LNG’s deferred cargo operations, passing these benefits directly to consumers.
The new pricing will take effect following official government notification. Meanwhile, existing tariffs remain applicable until formal approval is granted.
This development represents a significant policy shift aimed at providing economic relief to Pakistani households and businesses during challenging economic conditions.
