Gas Price Hike Anticipated: SNGPL Seeks 42% Increase, SSGC Proposes 159%
  • SNGPL is requesting a 42% increase in gas prices, while SSGCL seeks a substantial 159% hike.
  • If SNGPL’s request is approved, the gas price will rise to Rs2,485.72 per MMBTU.
  • SSGC cites a revenue requirement of Rs883.544 billion for FY2025-26.

Gas consumers should prepare for significantly higher gas bills starting in July 2025. Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have proposed substantial price increases for FY2025-26.

SNGPL has petitioned for a 42% increase in gas prices, which translates to Rs735.59 per million British Thermal Unit (MMBTU). If the Oil and Gas Regulatory Authority (Ogra) approves this request, SNGPL’s gas price would be set at Rs2,485.72 per MMBTU.

SSGC’s proposal is even more significant, seeking a 159% increase, or Rs2,443 per MMBTU. This large increase is reportedly intended to recover past financial shortfalls the company has faced.

SNGPL stated that a substantial revenue shortfall of Rs207.4 billion and rising costs for both locally produced gas and Re-Gasified Liquefied Natural Gas (RLNG) are the primary reasons for the proposed increase.

SNGPL also highlighted a projected increase of Rs231.604 billion in the cost of indigenous gas and an estimated Rs299.936 billion for RLNG diversion costs.

The petitioner further noted that the prior year shortfall up to FY2024-25 is Rs478.54 billion, which increases to Rs685.976 billion after including current year shortfalls. Additionally, the petitioner has claimed an RLNG service cost of Rs69.889 billion (i.e., Rs317.72/MMBTU) for FY2025-26.

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

SSGC has also filed a petition to increase the tariff to Rs4,137.49 per MMBTU, citing a total revenue shortfall of Rs498.76 billion from previous years.

The company attributes the proposed hike to the increasing cost of RLNG and the decreasing supply of indigenous gas, citing a revenue requirement of Rs883.544 billion for the upcoming fiscal year.

In related news, 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. This will reduce power rates by Rs1.71 per unit for Discos and K-Electric consumers.

This relief, which will be effective from April to June 2025, aims to alleviate the financial burden on electricity consumers across the country, excluding lifeline consumers.

This action is part of a larger Rs325 billion subsidy package for FY2024-25, which includes the newly approved Rs58.6 billion allocation for this relief.