Saturday, June 21, 2025

Gas prices expected to rise from July 1 as govt reviews tariffs

The Petroleum Division is collaborating with audit firm KPMG to identify which domestic consumers will see an increase in gas prices starting July 1, 2025.

KPMG’s analysis will help the federal government decide on new tariffs in line with the International Monetary Fund (IMF) program, which requires gas prices to be adjusted to address the financial struggles of the Sui gas companies.

Back on May 20, 2025, the Oil and Gas Regulatory Authority (Ogra) announced updated gas prices for the fiscal year 2025–26.

The rate for Sui Northern Gas Pipelines Limited (SNGPL) was raised to Rs1,895.50 per MMBtu due to increased reliance on re-gasified LNG.

In contrast, the price for Sui Southern Gas Company (SSGC) was reduced by Rs103.95 to Rs1,658.55 per MMBtu.

At present, SNGPL is dealing with a Rs40 billion shortfall, while SSGC is operating with a surplus.

To support protected and lower-tier domestic consumers, a cross-subsidy of Rs. 140 billion is being paid by higher-paying groups such as industrial, commercial, captive power, CNG, bulk, and affluent domestic users.