Petroleum Division outsources gas price hike decision to audit firm

The Petroleum Division has outsourced the decision on which domestic categories will face a hike in natural gas prices to KPMG, an international audit firm. This marks the first time the task of determining gas price increases for consumers has been entrusted to an external firm. 

KPMG is tasked with advising the government on which domestic consumers should experience a rise in gas prices starting July 1, 2025, The News reported, citing a senior official from the Energy Ministry.

Under pressure from the International Monetary Fund (IMF), the government is required to implement a gas price hike across all consumer categories to eliminate any shortfall faced by the Sui gas companies. 

Currently, Sui Northern is dealing with a Rs40 billion shortfall, while Sui Southern has a surplus.

The government has until June 28, 2024, to finalise its decision on the new gas prices. KPMG is expected to submit its recommendations soon, which will first be presented to the Economic Coordination Committee (ECC) for approval, followed by the Prime Minister’s formal approval.

On May 20, 2025, the Oil and Gas Regulatory Authority (OGRA) set the gas prices for Sui Northern Gas Pipelines Limited (SNGPL) consumers at Rs1,895.5 per MMBtu for the upcoming fiscal year. This increase follows the rise in the use of Re-gasified Liquefied Natural Gas (RLNG). 

However, OGRA reduced the price for consumers of Sui Southern Gas Company (SSGC) by Rs103.95 per MMBtu, setting the prescribed price at Rs1,658.55 per MMBtu.

At present, a cross-subsidy of Rs140 billion is being extended to industrial, commercial, captive power plants, bulk, CNG, and high-end domestic consumers to support the first four slabs of unprotected gas consumers.