Task to finalise increased gas sale price outsourced

ISLAMABAD: In a rare development, the top authorities of the Petroleum Division have outsourced to KPMG, a reputable audit firm, to determine which domestic categories will face a hike in sale gas price from July 1, 2025.

“This is for the first time that the task of increasing the sale gas price has been given to KPMG. The audit firm would suggest to the government which domestic consumers should face an increase in the sale gas price,” a senior official of the Energy Ministry told The News.

The Oil and Gas Regulatory Authority (Ogra) on May 20, 2025 determined for Financial Year 2025-26 the hike in gas price for consumers of Sui Northern Gas Pipelines Limited (SNGPL) the prescribed price of Rs1895.5 per MMBtu for gas consumers of all categories’ because of the increase in usage of RLNG. However, the regulator decreased the gas price for consumers of Sui Southern Gas Company (SSGC) by Rs103.95 per MMBtu to the prescribed Rs1,658.55 per MMBtu for all consumers.

Under the IMF diktat, the government has to enforce the hike in gas sale price for all consumers across the country ensuring zero shortfall of the Sui gas companies. Sui Northern is facing a shortfall of Rs40 billion, but Sui Southern is in surplus. The government needs to take the required decision for new sale gas price till June 28, 2024 as the said date is the deadline.

The KPMG would soon finalise its recommendation for the government for a hike in sale gas price. The decision would be approved first in ECC and then it will be rectified by the prime minister.

Right now, the cross-subsidy of Rs140 billion is being extended by industrial, commercial, captive power plants, bulk, CNG and high-end domestic consumers to the protected and first four slabs of unprotected gas consumers.