ISLAMABAD: Pakistan’s Oil and Gas Regulatory Authority (OGRA) has approved major increase hikes in gas prices, affecting consumers nationwide.
According to reports, the decision, sent to the federal government for final approval consumers in Sindh and Balochistan will see an average increase of 25.78 percent (pc), while consumers in Islamabad, Punjab, and Khyber Pakhtunkhwa will experience an 8.71pc rise.
Under the new tariff, the average gas price for Sui Southern Gas Company (SSGC) has been fixed at Rs1,762.51 per MMBTU, and for Sui Northern Gas Pipelines Limited (SNGPL), it’s Rs1,778.35 per MMBTU.
These changes aim to address financial requirements amounting Rs 527.55 billion for SNGPL and Rs 319.78 billion for SSGC, along with adjustments for prior receivables.
The companies had originally sought a rise in gas prices as high as 208.67pc but were met with public hearings by OGRA last month. OGRA’s decision to forward the recommendations to the federal government for final approval means that a notification will be issued once the government gives its consent.
The recent revision in gas prices comes amid growing financial pressures on gas companies, with SNGPL granted approval to recover over Rs 50 billion from previous adjustments, and SSGC allowed to recover Rs 48.85 billion.
In November 2024, the Government of Pakistan hinted at a potential increase in gas prices for domestic consumers, marking the fourth hike in two years.
Reports suggested that a request had been made to increase the gas prices by 3.66 percent (pc) for Punjab, Khyber Pakhtunkhwa, and Islamabad, while a much larger hike of 53.47% was proposed for Sindh and Balochistan.
SNGPL had proposed an increase of Rs 64.16 per MMBtu, raising its average price to Rs 1,810.38 per MMBtu, while SSGC sought a rise of Rs 669.07 per MMBtu, bringing its average price to Rs 1,920.39 per MMBtu.
Since January 2023, gas prices for domestic consumers have increased three times, adding over Rs 900 billion to the financial burden on consumers over the past two years.
