Gas Price Bombshell Before Winter: Major Increase Proposed

Islamabad: Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) have submitted requests for a staggering 54% increase in gas prices to meet their revenue targets for the fiscal year 2025.
Gas prices are typically reviewed biannually, with the Oil and Gas Regulatory Authority (OGRA) determining the adjustments, followed by the government setting consumer rates based on various categories.
OGRA has announced a hearing on SSGCL’s request for an increase of 669 PKR per unit (Metric Million British Thermal Unit) or 53.5% on November 8. Meanwhile, SNGPL is seeking a 3.66% or 64.16 PKR per MMBTU increase, with its hearing scheduled for November 5.
SNGPL submitted its request on October 15, followed by a revised petition for a review of its revenue needs for the fiscal year 2025 on October 18. The company estimates a revenue shortfall of 20.85 billion PKR, which includes 489 million PKR related to the LPG-Air Mix Project, prompting it to seek an increase of 64.16 PKR per MMBTU.
On the other hand, SSGCL forecasts a revenue shortfall of 140 billion PKR for fiscal year 2025. The Karachi-based company has requested an increase of 669.07 PKR per MMBTU, which would raise its current rate from 1,251 PKR to 1,920 PKR per MMBTU.