SSGC seeks PKR 366.75 gas price hike, SNGPL PKR 10.40

Pakistan's two state-owned gas utilities, Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL), have requested a gas price hike in their average prescribed rates for fiscal year 2026-27. They filed review petitions with the Oil and Gas Regulatory Authority (OGRA) in November, citing higher energy costs and winter supply pressures.

How much of a gas price hike have SSGC and SNGPL sought?

SSGC wants an additional PKR 366.75 per million British thermal units (MMBtu), taking its average prescribed price to PKR 2,071.75. SNGPL's requested increase is PKR 10.40 per MMBtu, from PKR 1,702 to PKR 1,712.40. Both companies want the revised rates applied retrospectively from July 1, 2026.

Why are the utilities seeking higher prescribed prices?

SNGPL has included PKR 60.147 billion in liquefied natural gas (LNG) service costs in its proposed pricing, equivalent to PKR 471.16 per MMBtu.

The company said limited availability of domestically produced natural gas during winter would require additional supplies to meet consumer demand.

It estimated that around 16 LNG cargoes would be needed during the winter season.

Both utilities also cited higher international crude oil prices as a factor behind their proposed adjustments.

Will the proposed increases affect consumer gas bills?

The petitions concern average prescribed prices, which OGRA determines to assess the utilities' revenue requirements. They do not constitute an immediate increase in gas tariffs for households or businesses.

OGRA has issued public hearing notices for both companies' review petitions and will examine their proposals before making its determinations.

Any change in consumer gas tariffs would require a separate government decision and notification.