Pakistan regulator proposes up​ to 8% cut in gas price

Pakistan has reduced the price of natural gas after a review of the revenue requirement of the two public suppliers.

In its order issued on Monday, the sector’s regulator, the Oil and Gas Regulatory Authority (OGRA), said the decision has been made to benefit the consumers.

Pakistan’s two gas utility companies, Sui Southern Gas Company (SSGC) and the Sui Northern Gas Pipelines Limited (SNGPL), had submitted an application to review the price based on their revenue estimation for the financial year 2025-26.

After hearing the applications, OGRA announced its decision, cutting the gas price by 3% for SNGPL and 8% for SSGC.

OGRA said it has “carefully reviewed the revenue requirement” of both companies and determined the price by “optimizing costs as well as revenues”.

The average prescribed price for SNGPL has been determined at PKR 1,804.08 per MMBTU and PKR 1,549.41 per MMBTU for SSGC for FY26.

The regulator said it has also added to the cost the impact of deferred cargoes in the case of Pakistan LNG Limited.

The regulator has sought the federal government's advice on its price determination.

“Any revision, as advised by the federal government, shall be accordingly notified by OGRA,” the regulator said, adding that until such decision, the existing prices will remain in effect.

The regulator has also adjusted PKR 13 billion for SNGPL and PKR 47.3 billion for SSGCL to adjust the previous shortfall /stock of gas circular debt.