Gas price hikes loom as SNGPL, SSGCL seek steep increases from July 2025

ISLAMABAD: Gas consumers across Pakistan could face a sharp financial strain starting July 2025, as Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have filed requests for significant hikes in gas prices for FY2025-26. SNGPL has sought anaverage price increase of 42 percent (Rs735.59 per MMBTU), while SSGCL is requesting an eye-watering 159 percent increase (Rs2,443 per MMBTU), which includes the recovery of past shortfalls.

SNGPL has petitioned the Oil and Gas Regulatory Authority (Ogra) for approval to raise its gas price and set it at Rs2,485.72 per Million British Thermal Unit (MMBTU), citing a revenue shortfall of Rs207.4 billion and rising costs of both indigenous and Re-Gasified Liquefied Natural Gas (RLNG). Additionally, the utility highlights an increase in the cost of indigenous gas, projected at Rs231.604 billion, as well as the cost of RLNG diversion, estimated at Rs299.936 billion. The petitioner also said that prior year shortfall up to FY2024-25 is Rs478.54 billion which becomes Rs685.976 billion after including current year shortfalls. Besides, the petitioner has claimed RLNG cost of service at Rs69.889 billion (i.e. Rs317.72/MMBTU) for FY2025-26.

Public hearings on SNGPL’s petition are scheduled for April 18 in Lahore and April 28 in Peshawar.

Meanwhile, SSGCL has filed a petition seeking the tariff to be increased to Rs4,137.49 per MMBTU, driven by a total revenue shortfall of Rs498.76 billion from previous years. The company attributes the hike to the increasing cost of RLNG and the dwindling supply of indigenous gas. The company has cited a revenue requirement of Rs883.544 billion for the upcoming fiscal year.

Meanwhile, the National Electric Power Regulatory Authority (Nepra) has approved the federal government’s plan to redirect Rs58 billion collected from oil consumers to provide relief to electricity users, cutting power rates by Rs1.71 per unit for Discos and K-Electric consumers.

The relief, effective from April to June 2025, aims to ease the financial burden on electricity consumers across the country, excluding lifeline consumers. This move comes as part of a larger Rs325 billion subsidy package for FY 2024-25, which includes the newly approved Rs58.6 billion allocation for this relief.