The Oil and Gas Regulatory Authority (OGRA) approved gas price adjustments for Pakistan, affecting regions including Sindh, Balochistan, Punjab, Khyber Pakhtunkhwa (KP), and Islamabad. The changes, pending federal government approval, will apply to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), with a reduction for SSGC and an increase for SNGPL, set to take effect from January 1, 2025.
OGRA recommended a price decrease of Rs 103.95 per MMBTU for SSGC, covering Sindh and Balochistan, offering relief to consumers in these regions. Conversely, SNGPL, serving Punjab, KP, and Islamabad, will see a price hike of Rs 116.90 per MMBTU, driven by rising import costs of Regasified Liquefied Natural Gas (RLNG). The adjustments aim to address financial shortfalls, with SNGPL requiring Rs 527.55 billion and SSGC needing Rs 319.78 billion to sustain operations in the 2025-26 fiscal year.
OGRA urged the federal government to monitor gas management policies and implement category-wise pricing to balance financial needs. The government’s decision on protected consumer categories will determine whether lower-income households face the price hike’s impact or if high-end consumers bear the burden. Industry experts warn that the SNGPL increase could significantly affect domestic and industrial users in Punjab, KP, and Islamabad, potentially raising living and production costs.
The price adjustments await federal approval, after which OGRA will issue an official notification. The changes, effective January 1, 2025, if approved, will reshape Pakistan’s energy landscape. The SSGC reduction may ease costs in Sindh and Balochistan, while SNGPL’s hike could strain budgets in northern regions. OGRA’s focus on financial sustainability underscores the need to balance consumer affordability with operational viability.
NEPRA’s K-Electric FCA Hearing
In a related energy development, the National Electric Power Regulatory Authority (NEPRA) concluded a hearing on K-Electric’s request for a PKR 5.02 per unit Fuel Charge Adjustment (FCA) relief for March 2025, citing global fuel price fluctuations and energy mix variations. NEPRA will soon announce its decision, detailing the FCA amount and duration for customer bills that impact Karachi’s electricity consumers.
