Govt fixes Rs2,000 per mmbtu gas rate for RLNG power plants amid LNG shortage

The government will supply domestically produced natural gas to RLNG-based power plants at an interim rate of Rs2,000 per mmbtu after LNG imports were disrupted during the U.S.-Iran conflict, The News reported, citing a Power Division official as saying. 

The official said the mechanism is aimed at keeping electricity generation running while limiting the impact on consumer tariffs.

The decision follows the suspension of LNG shipments to Pakistan by Qatar after the outbreak of the U.S.-Iran war, which left RLNG-fired power plants facing fuel shortages.

The plants had been using imported LNG priced at around Rs3,500 per mmbtu, forcing the government to divert domestic gas to avoid a deeper power supply shortfall.

The official said reports suggesting that domestic gas would be charged at the full imported RLNG price were incorrect.

According to officials, RLNG-based power plants had earlier received domestic gas at Rs1,245 per mmbtu, while Sui gas companies sell gas at rates of up to Rs3,500 per mmbtu.

They said continuing the lower rate would increase circular debt in the gas sector, while charging the full RLNG price would push up electricity tariffs.

A summary seeking formal approval of the Rs2,000 per mmbtu pricing mechanism has been submitted to the relevant authorities.

The development comes as the National Electric Power Regulatory Authority (NEPRA) separately considers an 82-paisa-per-unit increase in electricity tariffs under the May 2026 fuel charges adjustment.

The proposed adjustment could add nearly Rs12 billion to consumers’ electricity bills.

The Central Power Purchasing Agency (CPPA) told Nepra that the adjustment was based on the gap between the estimated fuel cost of Rs8.43 per unit and the actual cost of Rs9.25 per unit.