OGRA increases gas price for captive industry, effective February 2025

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has announced a change in the gas sale price for the General Industry (Captive) category following advice from the federal government.

This price revision, which will take effect on February 1, will increase the gas price from Rs3,000 per MMBTU to Rs3,500 per MMBTU.

The change comes after the government reviewed OGRA’s findings on the estimated revenue requirements for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for the ongoing financial year.

Importantly, gas prices for all other consumer categories—including domestic, special roti tandoor, general industry (process), commercial, CNG, cement, fertilizer, and power—will remain the same.

This adjustment has been officially published in the gazette and is available on OGRA’s website.

Earlier, OGRA had recommended a substantial gas price increase to help recover Rs847.33 billion during the current fiscal year and address the growing circular debt in the gas sector. The authority proposed a price hike of Rs142.45 per MMBTU for SNGPL consumers and Rs361 per MMBTU for SSGCL consumers.

The proposed changes would have raised the price for SNGPL consumers to Rs1,778.35 per MMBTU (an 8.71 per cent increase) and for SSGCL consumers to Rs1,762.51 per MMBTU (a 25.78 per cent increase).

Under the revised OGRA law, the federal government must issue consumer rates by category, but without changing the overall revenue requirement set by the regulator.

While OGRA suggested broad increases, the government chose to keep most prices unchanged and only implement a targeted rise for the captive industry.

The General Industry (Captive) category refers to industrial units that produce power for their own use, or for sale to a distribution company or bulk-power consumers.

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