OGRA approves price adjustments for SNGPL, SSGC

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has approved new gas price adjustments for various regions across Pakistan. These changes affect both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC).

According to details, Sindh and Balochistan may see a drop in gas prices, while consumers in Punjab, Khyber Pakhtunkhwa, and Islamabad could face an increase.

OGRA has recommended a Rs103.95 per MMBTU decrease for SSGC customers. In contrast, SNGPL consumers are likely to face a hike of Rs116.90 per MMBTU.

The increase for SNGPL is tied to the rising cost of importing Regasified Liquefied Natural Gas (RLNG).

The regulator also urged the federal government to oversee gas pricing policies and approve the adjustments based on consumer categories.

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These changes aim to address financial shortfalls in the upcoming fiscal year 2025-26.

SNGPL reportedly needs Rs527.55 billion to stay afloat, while SSGC is short by Rs319.78 billion. Final approval from the federal cabinet is awaited, after which OGRA will issue a formal notification.

Experts say the revised prices will hit both domestic and industrial users, especially in areas where rates are going up. Much will depend on how the government handles “protected” consumer categories, which decide whether the cost burden falls on poor or wealthier households.

If approved, the new gas prices are expected to come into effect from January 1, 2025.