The federal government has approved an increase in fixed charges for domestic gas consumers of SNGPL and SSGC by Rs150 for protected consumers and Rs400 for non-protected consumers, effective from July 1, 2025.Â
Additionally, an average 10% tariff hike will be applied to the power sector, bulk consumers, and general industry.
On Friday, the Economic Coordination Committee (ECC) approved the summary from the Petroleum Division, which proposed a revised natural gas pricing structure for the fiscal year 2025–26.Â
The ECC decided to maintain gas prices for household consumers while adjusting fixed charges in the domestic sector to recover asset costs. It also approved an average 10% price increase for bulk consumers, power plants using natural gas, and industries.
The tariff for bulk consumers will rise from Rs2,900 per MMBTU to Rs3,075, while the power sector tariff will increase from Rs1,050 to Rs1,313 per MMBTU. For general industries (process), the tariff will be revised from Rs2,150 to Rs2,350 per MMBTU.
The government has also been in talks with the IMF under the Resilience Sustainability Facility to replace cross-subsidies with targeted subsidies based on income levels, as per the framework being developed by the Petroleum Division. This model is expected to roll out by 2027.
The revised tariffs are expected to address the Rs41 billion revenue deficit of SNGPL and generate a Rs31 billion surplus for SSGC, which will be used to cover its previous revenue shortfall of Rs565 billion.
