SNGPL and SSGC Seek Major Gas Price Hikes to Cover Rs77 Billion Shortfall
Pakistan’s two state owned gas companies that are Sui Northern Gas Pipelines Limited and Sui Southern Gas Company have proposed significant gas price increases for the fiscal year 2025 to 26 which aims to recover a combined revenue shortfall of over Rs77 billion. SNGPL and SSGC Seek Major Gas Price Hikes to Cover Rs77 Billion Shortfall and The proposals were submitted separately to the Oil and Gas Regulatory Authority under Section of the OGRA Ordinance 2002 and Rule 4(3) of the Natural Gas Tariff Rules 2002. Both utilities cited rising costs, depreciation, and imported RLNG which is Re -gasified Liquefied Natural Gas expenses as the main reasons behind the tariff revisions.
SNGPL Requests Rs189 Per MMBTU Increase
The SNGPL which supplies gas to Punjab and Khyber Pakhtunkhwa province has requested a price hike of Rs189 per million British thermal units MMBTU. If approved, this would raise the average prescribed price to Rs1,955.50 per MMBTU, up from the current Rs1,766.50.
The company projected a revenue shortfall of Rs52.96 billion for FY2025 to 26. It attributed this gap to higher RLNG costs which increased operational expenses and asset depreciation. SNGPL also mentioned RLNG diversion costs for domestic consumers and a Rs2.08 per MMBTU subsidy for its LPG Air Mix project.
SSGC Seeks Rs125.41 Per MMBTU Increase
The SSGC which serves Sindh and Balochistan has sought an increase of Rs125.41 per MMBTU. The company average prescribed price would then rise to Rs1,783.96 per MMBTU from Rs1,658.55.
SSGC reported a revenue deficit of Rs24.05 billion which is driven largely by rising gas purchase costs, depreciation and financial charges.
SSGC has claimed Rs34.25 billion which is equivalent to Rs178.59 per MMBTU for previous years unrecouped shortfalls that bring the total proposed price to Rs1,962.55 per MMBTU. The petition also includes a Rs13.48 per MMBTU subsidy and an RLNG service cost of Rs57.87 per MMBTU.
OGRA Scheduled
The Oil and Gas Regulatory Authority has scheduled public hearings to review these petitions and gather feedback from consumers and stakeholders.
- SNGPL hearing on 7 November 2025 in Lahore.
- SSGC hearing on 11 November 2025 in Karachi.
These sessions will determine whether the requested increases will be approved which are partially adjusted or rejected.
Read more : Pakistan Gas imports plan and LNG oversupply
Impact on Consumers due to SNGPL and SSGC Seek Major Gas Price Hikes to Cover Rs77 Billion Shortfall:
If the proposed SNGPL and SSGC Seek Major Gas Price Hikes to Cover Rs77 Billion Shortfall hikes are approved then gas tariffs could rise by 10–12% that put further pressure on households and industries already struggling with high inflation and soaring energy costs.
Economists warn that such increases could raise the cost of production, particularly in textiles, cement, and fertilizer and the sectors also increasing inflationary pressure for domestic consumers.
Conclusion
SNGPL and SSGC Seek Major Gas Price Hikes to Cover Rs77 Billion Shortfall and The proposed gas price revisions by SNGPL and SSGC highlight the growing financial strain on Pakistan’s energy sector amid a weak economic outlook and persistent global energy challenges.
As OGRA prepares for its public hearings, all eyes are on the regulator’s final decision which will directly impact millions of Pakistani consumers and the country’s fragile industrial recovery.
FAQ’s
How much SNGPL and SSGC Seek Major Gas Price Hikes to Cover Rs77 Billion Shortfall?
SNGPL and SSGC Seek Major Gas Price Hikes to Cover Rs77 Billion Shortfall to increase for the fiscal year of 2025 to 26 which aims to recover a combined revenue shortfall of over Rs77 billion in Pakistan.
Why is the gas price expected to increase in Pakistan?
Gas prices are expected to increase in Pakistan due to higher RLNG costs, depreciation, and operational expenses faced by gas utilities.
How much increase is SNGPL requesting in Pakistan?
SNGPL requires Rs189 per MMBTU that raises the average price to Rs1,955.50 per MMBTU.
What about SSGC’s proposal?
SSGC seeks a Rs125.41 per MMBTU increase with plus adjustments for previous years shortfalls.
When will OGRA make a final decision about Gas?
Public hearings are set for November 2025 after which OGRA will announce its decision.
How will this affect consumers?
If this decision is approved the hikes will increase gas bills for households and raise costs for industries.