OGRA approvesrevision in gas prices for SNGPL and SSGC

OGRA proposes hike for SNGPL and cut for SSGC in new gas price adjustments for FY 2025–26, pending federal approval.

The Oil and Gas Regulatory Authority (OGRA) has approved revisions in gas prices for the country’s two main distribution companies — Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC).

The regulator has sent its decision to the federal government to notify the gas prices for the different category of the consumers.

The federal government is bound to notify gas prices within forty days of issuing the decisions of the OGRA.

OGRA in a statement said that under Section 8(1) of OGRA Ordinance, 2002, vide its decisions dated May 20, 2025, it has determined the Estimated Revenue Requirement of SSGCL & SNGPL for FY 2025-26. 

Both determinations have been sent to Federal Government for receipt of category-wise natural gas sale price advice as required under Section 8(3) of the OGRA Ordinance.

Any revision, as advised by federal government, shall be accordingly notified by OGRA. Till such time the existing category wise natural gas sale prices shall continue to prevail, said OGRA.

According to OGRA’s determination, a decrease of Rs103.95 per MMBTU has been recommended for SSGC, while an increase of Rs116.90 per MMBTU has been proposed for SNGPL.

The proposed increase in gas prices for SNGPL is attributed to the rising costs associated with increased imports of Re-gasified Liquefied Natural Gas (RLNG).

OGRA has also advised to take up the issue of gas management in SNGPL’s jurisdiction before the federal government and has proposed the federal government to set the gas prices on a category-wise basis.

The regulators formulated its pricing recommendations keeping in view the projected revenue shortfall for both companies for the fiscal year 2025-26.

The final notification will be issued by OGRA after formal approval from the federal government.

The OGRA has determined the Estimated Revenue Requirement of SSGCL & SNGPL for FY 2025-26. Both determinations have been sent to federal government for receipt of category-wise natural gas sale price advice as required under Section 8(3) of the OGRA Ordinance.  

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at ahmad.ahmadani@pakistantoday.com.pk.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read