The decision has been sent to the federal government for notification of consumer gas prices
ISLAMABAD:
The Oil and Gas Regulatory Authority (OGRA) on Monday cut gas prices by up to 8 percent for consumers of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC), in line with revenue requirements for the 2025-26 financial year.
The regulator has also passed on Rs60 billion to consumers to clear earlier adjustments and the stock of gas circular debt.
Following a federal government decision dated July 1, 2024, it has adjusted Rs13,565 million for SNGPL and Rs47,315 million for SSGCL against past shortfalls and the existing circular debt. The decision has been sent to the federal government for notification on consumer prices of gas, which involves cross-subsidisation across categories.
In a statement, OGRA said it has carefully reviewed the revenue requirement of SNGPL and SSGCL and rationalized the demand by optimizing costs as well as revenues.
The regulator added that the effect of deferred loads in the case of Pakistan LNG Limited has been included for the benefit of gas consumers.
Accordingly, the prescribed average price for FY 2025-26 has been provisionally fixed at Rs1,804.08 per MMBTU for SNGPL and Rs1,549.41 per MMBTU for SSGCL, reflecting reductions of 3 percent and 8 percent respectively over the current prescribed rates.
OGRA said the measures are in line with its mandate to protect consumer interests and promote tax discipline.
“Through the above decision, the Federal Government has been requested to advise on category wise selling prices. Any revision as recommended by the Federal Government shall be notified by OGRA accordingly. Until such time the existing category wise selling prices of natural gas will continue to apply,” the statement added.
Earlier, SNGPL had sought an average price hike of 28.62 percent, equivalent to Rs505.64 per MMBTU, while SSGC had requested an increase of 21.82 percent, or Rs361.87 per MMBTU, for FY 2025-26.
Both companies cited a combined deficit of over Rs 77 billion to cover rising costs and system inefficiencies.
SNGPL expected a revenue shortfall of Rs 52.958 billion for the financial year, citing higher imported RLNG costs, operating costs and depreciation. It had requested a total increase of Rs 505.64 per MMBTU, with Rs 189 per
This would have raised SNGPL’s average prescribed price to Rs2,272.14 per MMBTU, including an increase for indigenous supplies to Rs1,955.50 per MMBTU from the current Rs1,766.50.
SSGC expected a loss of Rs24.049 billion, attributing the demand primarily to rising gas purchase costs, depreciation and finance charges.
It had sought an average increase of Rs 361.87 per share. MMBTU which includes Rs 125.41 per MMBTU for domestic gas, Rs 178.59 per
This would have raised SSGC’s average prescribed price to Rs 2,020.42. per MMBTU from the existing Rs.1,658.55.
