Pakistan raises RLNG prices by up to 15.3%, LPG by PKR 14.73 per kg

Pakistan’s Oil and Gas Regulatory Authority (OGRA) has increased regasified liquefied natural gas (RLNG) prices by up to 15.3% for October and raised liquefied petroleum gas (LPG) prices by PKR 14.73 per kilogram for November, adding to energy costs ahead of winter.

OGRA notified the RLNG price increases for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), mainly reflecting higher international crude oil prices.

The increase follows a 20% reduction in RLNG prices in September.

The average delivered ex-ship price of two LNG cargoes imported in October stood at USD 10.75 per million British thermal units (mmBtu), compared with USD 10.06 in September, USD 12.12 in August and USD 18.96 in July.

RLNG-based power generation cost about PKR 40 per unit in September, when the average LNG import price was USD 10.06 per mmBtu. The higher October import price could increase fuel costs for power generation in December.

How much have RLNG prices increased?

OGRA's October notification raised SNGPL's RLNG sale price at the transmission stage by 13.9%, from USD 13.99 per mmBtu in September to USD 15.94. At the distribution stage, its price increased 14%, from USD 15.196 to USD 17.33 per mmBtu. The revised rates apply from October 1.

For SSGCL, the RLNG sale price at the transmission stage increased by 15.25% to USD 14.53 per mmBtu from USD 12.611 in September.

At the distribution stage, SSGCL's price rose by 15.27% to USD 16.396 per mmBtu from USD 14.22 in September.

SSGCL supplies gas to consumers in Sindh and Balochistan, while SNGPL serves Punjab and Khyber Pakhtunkhwa.

SSGCL's distribution system losses stood at 12.55%, compared with about 10.6% a year earlier. SNGPL's distribution losses were reported at nearly 9%, against 7.47% in October last year.

How much will LPG cost in November?

Separately, OGRA increased LPG prices for November by PKR 14.73 per kilogram, taking the official rate to approximately PKR 294.08 per kilogram.

The price of an 11.8-kg domestic LPG cylinder increased by PKR 173.86 to PKR 3,470.09 for November from PKR 3,296.23 in October.

The revised LPG prices took effect nationwide on November 1, adding to household expenses, particularly for consumers in areas without piped natural gas who rely on LPG for cooking and heating.

Business Recorder reported that LPG was being sold for around PKR 600 per kilogram in some parts of the country, significantly above the notified rate.