Gas prices in Pakistan set to rise amid tariff proposals by sui companies

Gas prices in Pakistan are likely to increase as Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have submitted requests for substantial tariff hikes for the fiscal year 2025-26, according to reports.

SNGPL has proposed a rise of Rs. 735.59 per MMBTU, while SSGC seeks a larger increase of Rs. 2,443 per MMBTU, which includes adjustments for prior revenue shortfalls.

The proposed hikes are part of the companies’ efforts to meet their financial needs—Rs. 700 billion for SNGPL and Rs. 44 billion for SSGC.

Public hearings on these tariff proposals will be held in Lahore and Peshawar on April 18 and 28, and in Karachi and Quetta on April 21 and 23. The Oil and Gas Regulatory Authority (OGRA) is currently reviewing the requests and has already approved significant increases in gas tariffs for the current fiscal year.

The new rates include an average increase of 25.78% for Sindh and Balochistan, and 8.71% for Punjab, Khyber Pakhtunkhwa, and Islamabad.

Additionally, OGRA has revised the LPG prices for April 2025, raising the rate by Rs. 0.54 per kg. This brings the price of an 11.8 kg domestic LPG cylinder to Rs. 2,930.71.

While gas prices are expected to rise, relief may be on the horizon at petrol pumps, as petrol prices in Pakistan are projected to decrease by Rs. 12 per liter starting April 16, following a drop in international crude oil prices.