Ogra Approves Up to 8% Reduction in Gas Tariffs for FY 2025-26
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Monday approved a reduction of up to 8% in natural gas tariffs for Pakistan, pending final endorsement from the federal government.
Following a detailed review of the projected revenue requirements for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for the fiscal year 2025-26, Ogra proposed revised rates of Rs1,804.08 per metric million British thermal unit (mmbtu) for SNGPL and Rs1,549.41/mmbtu for SSGCL. These adjustments represent decreases of 3% and 8%, respectively.
Ogra stated that the tariff revision reflects careful optimization of costs and revenues, including the impact of deferred cargoes from Pakistan LNG Limited, ultimately benefiting consumers. Additionally, adjustments of Rs13.565 billion for SNGPL and Rs47.315 billion for SSGCL have been accounted for from previous gas circular debt shortfalls, following directives from the federal cabinet.
While the authority awaits guidance from the government on category-specific sale prices, current gas rates for each category will remain in effect until further notice.
In a related development, Petroleum Minister Ali Pervez Malik instructed gas companies to maintain uninterrupted supply during the upcoming winter season. During a review meeting, the managing directors of SNGPL and SSGC briefed the minister on national gas availability and progress on issuing RLNG domestic connections. Malik emphasized that domestic gas supply this winter is expected to be considerably improved compared to last year.
