Fixed gas charges increased by 50% for domestic consumers

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has notified a 50% increase in fixed gas charges for domestic consumers, effective July 1, as part of the revised gas pricing structure for the fiscal year 2025-26.

"The federal government, in response to Ogra's determinations of SNGPL [Sui Northern Gas Pipelines Limited] and SSGCL [Sui Southern Gas Company Limited] of estimated revenue requirement for FY 2025-26, has advised revised category-wise natural gas sales effective July 01, 2025," stated a notification issued by Ogra..

According to the notification, the federal government increased the fixed charges for protected category from Rs400 to Rs600, while those in the non-protected category will now pay Rs1,500, up from Rs1,000.

For non-protected consumers whose gas consumption exceeds 1.5 cubic hectometres (hm³), fixed charges have been raised from Rs2,000 to Rs3,000, it stated.

Despite the hike in fixed charges, the actual gas tariffs remain unchanged, the notification clarified. The sale prices for both protected and non-protected domestic consumers, as well as for tandoors, commercial units, CNG stations, and ice factories, will remain the same.

However, the gas sale prices for general industries, power stations and independent power producers have risen.

The development came two days after the Economic Coordination Committee (ECC) of the Cabinet approved a revised natural gas pricing structure for the fiscal year 2025–26, allowing a hike in prices for bulk consumers.

Under the Oil and Gas Regulatory Authority (Ogra) Ordinance, the federal government is required to notify revised consumer gas prices within 40 days of determination to ensure cost recovery and regulatory compliance.

The move also aligns with structural benchmarks agreed with the International Monetary Fund (IMF), including rationalisation of captive power tariffs and a shift from cross-subsidies to direct, targeted support for low-income consumers.

The ECC decided to maintain gas prices for household consumers, with only fixed charges re-adjusted in the domestic sector to recover asset costs.