SSGC proposes gas price hike to ensure uninterrupted supply

Officials from the Sui Southern Gas Company (SSGC) indicated that domestic gas prices may need to be raised to ensure uninterrupted supply and eliminate load-shedding.

The proposal was discussed during a meeting of the Senate Standing Committee on Petroleum, where lawmakers examined persistent issues of low gas pressure and outages.

The Managing Director of Sui Northern Gas Pipelines Limited (SNGPL) attributed the ongoing gas crisis to Pakistan’s heavy reliance on imported Liquefied Natural Gas (LNG).

He revealed that only 45% of the country’s gas demand is met through local production, while 55% depends on costly imports. Efforts are underway to restore supply in Lahore, and individual complaints, including those raised by Senator Kamil Ali Agha, will be addressed separately.

The committee was informed that over 25,000 consumer complaints were filed during Ramadan alone, with more than 131,000 out of 132,376 low-pressure complaints resolved in the past year. The SNGPL MD assured improvements in the complaint resolution system.

Read: Pakistan’s inflation drops to 0.7% in March, lowest in three decades

Petroleum Minister Ali Pervaiz Malik acknowledged that the petroleum sector had been neglected due to a focus on power issues. He noted declining local gas reserves and confirmed that imported LNG is now being used even for household stoves. While policy reforms for oil refineries remain pending, Malik highlighted growing foreign investment in the minerals sector.

Separately, the Director General of Minerals briefed the committee on the Reko Diq project, expecting production to start by 2028. The project, with a 37-year lifespan, is projected to generate $70 billion in revenue.

The Senate committee concluded discussions, considering the matter resolved for now.