OGRA to Review Rs150 Billion RLNG Price Revisions

OGRA to Review Rs150 Billion RLNG Price Revisions

The Oil and Gas Regulatory Authority OGRA to Review Rs150 Billion RLNG Price Revisions set to conduct a public hearing on 6 November 2025 to reassess Re-gasified Liquefied Natural Gas  prices spanning the last decade. This move follows a court directive and mounting protests by industrial and CNG consumers who were billed retrospectively for up to Rs150 billion a decision that has sparked intense debate across Pakistan’s energy sector.

RLNG Price Dispute :

Since April 2015, OGRA has been issuing provisional RLNG tariffs to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) without public hearings.

Consumers argue that these un consulted and backdated price adjustments were unfair especially as many businesses had already sold products based on the old gas rates.

Court Ruling and Consumer Protests

On 11 September 2025 the Lahore High Court Multan Bench ruled that OGRA must seek public input before implementing retroactive billing. The court called the move “unjustified” and demanded transparency in how RLNG prices are calculated and revised.

Following the verdict OGRA invited stakeholders  that include industrial, CNG, power and fertilizer consumers to participate in the upcoming hearing.

Breakdown of the Rs150 Billion Dispute

OGRA to Review Rs150 Billion RLNG Price Revisions  for Power Division for  the disputed billing amounts to around Rs61 billion that including:

  • Rs51.3 billion in price differentials
  • Rs8 billion in sales tax

However, industry representatives claim the actual burden could exceed Rs150 billion considering multiple rounds of revised tariffs and additional charges by PSO and Pakistan LNG Limited .

OGRA to Review Rs150 Billion RLNG Price Revisions
OGRA to Review Rs150 Billion RLNG Price Revisions

Government Response 

In August 2025 Prime Minister Shahbaz Sharif ordered an independent inquiry led by a former federal secretary to investigate the issues and  The findings of that problem are still pending while OGRA and SNGPL continue to exchange blame for the billing controversy. SNGPL maintains that OGRA first notified actualized RLNG prices for April 2015 June 2022 in December 2024 later revising them again in March 2025 after updated cost claims.

Read Also about : Major Gas Price Hikes to see 77Billion Shortfall

Public Hearing Cover

During the 6 November 2025 hearing OGRA to Review Rs150 Billion RLNG Price Revisions  will review:

  • Imported RLNG cost components
  • Terminal and port charges
  • Margins of PSO and PLL
  • Transmission losses
  • Exchange rate fluctuations

This review aims to determine fair and transparent RLNG pricing going forward and potentially refund or adjust unfair retroactive charges.

Impact on Consumers and Industry

Industrial users and CNG operators argue that retrospective billing has made it impossible to recover past costs especially as sold products can not be repriced. Energy experts warn that this could raise gas tariffs further affecting both manufacturing competitiveness and CNG affordability.

Conclusion

The upcoming  OGRA to Review Rs150 Billion RLNG Price Revisions for public hearing in Pakistan marks a crucial moment for Pakistan gas consumers and regulators alike. The outcome will determine whether past RLNG prices were fairly set and how future energy billing should be handled to ensure transparency and accountability. As the country faces growing energy costs, consumers are looking to OGRA for a fair resolution that protects both public interest and industrial stability.

FAQ’s

What is RLNG?
RLNG stands for Regasified Liquefied Natural Gas which is imported liquefied gas that is converted back to its gaseous state for local use.

Why is OGRA to Review Rs150 Billion RLNG Price Revisions in Pakistan?
The Oil and Gas Authority held a hearing because the Lahore High Court ordered Ogra to hear consumer concerns before finalising backdated RLNG price adjustments.

Who is affected by the billing dispute in Pakistan ?
Due to billing disputes Industrial, CNG, power and fertiliser sectors are affected as  all  are major users of RLNG.

How much is the total  disputed amount?
The total amount under dispute ranges from Rs61 billion to Rs150 billion depending on revised calculations.

When will the final decision be made in Pakistan?
After the November 6 public hearing  OGRA to Review Rs150 Billion RLNG Price Revisions and OGRA will issue a final notification once all stakeholder feedback is reviewed.

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