Pakistan holds natural gas prices steady as 2026 begins

Pakistan’s government has decided to keep natural gas prices unchanged from January 1, 2026, providing relief to consumers despite ongoing energy cost pressures, officials told a parliamentary committee.

The decision comes despite a recommendation by the Oil and Gas Regulatory Authority (OGRA) to increase average gas tariffs by up to 7.14%. OGRA had submitted the proposal to the federal government, which is responsible for setting revised rates for each consumer category, but the government opted to maintain existing prices.

Minister for Petroleum Ali Pervaiz Malik said the decision was taken on the instructions of Prime Minister Shehbaz Sharif and confirmed that gas tariffs would remain unchanged starting in January. He also assured lawmakers that the country’s gas circular debt, currently around PKR 3 trillion, would not rise further, including liabilities related to liquefied petroleum systems.

Malik highlighted Qatar’s continued adherence to its gas supply contracts, describing it as a key factor in maintaining stability in Pakistan’s gas sector.

Officials from state-run gas utilities outlined measures to curb losses and theft. The managing director of Sui Southern Gas Company said the firm had saved 43 billion cubic feet of gas over the past seven years and aimed to reduce theft to 7%, adding that the company’s infrastructure had been fully fenced and secured.

Similarly, the managing director of Sui Northern Gas Pipelines Limited reported that gas theft had fallen from 62 billion cubic feet to 29 billion cubic feet, with overall losses cut from 9% to below 5%.

During the committee meeting, lawmaker Asad Alam Niazi noted that gas circular debt had surpassed that of the power sector and asked about a proposed 5-rupee levy on consumers to reduce the debt, a question the petroleum minister did not answer.

Malik also said gas supplies to domestic consumers had been increased to meet higher demand during the winter months.