ISLAMABAD: Sui Northern and Sui Southern Gas Companies have submitted requests for significant increases in their tariffs to cover the fiscal year 2025-26, which will frequently lead to a price increase in the price of natural gas to consumers in Pakistan.
Sui Northern has requested a price increase of Rs. 735.59 per MMBTU, and Sui Southern requests a price increase of Rs. 2443, including adjustments for previous shortfalls.
To suffice the financials of both gas companies, Sui Northern states it needs Rs. 700 billion, while Sui Southern is requesting Rs. 44 billion. The Oil Gas Regulatory Authority (OGRA), which is Pakistan‘s oil and gas regulatory authority has agreed to public hearings across major cities.
The public hearings will be taking place in Lahore and Peshawar on April 18 and 28 and Karachi and Quetta on April 21 and 23. OGRA announced they approved significant increases in gas tariff with the average increase of 25.78% in Sindh and Balochistan and the average increase of 8.71% in Punjab, Khyber Pakhtunkhwa, and Islamabad.
The gas price increase will generally lead to higher living costs and production costs to households and industry. However, we can take some relief with expected decline in the cost in petrol to Rs. 12 per litre starting April 16 due to decline in global crude oil prices.
Also, OGRA has risen LPG prices for April 2025 additionally increasing by Rs. 0.54 per kg, bringing the price of LPG up to Rs. 0.54 per kg, which brings the price of an 11.8 kg domestic cylinder to Rs. 2,930.71.
About The Author
