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OGRA announces up to 50% hike in gas prices from July 1

OGRA announces up to 50% hike in gas prices from July 1

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The Oil and Gas Regulatory Authority (OGRA) has issued an official notification announcing a major hike in gas prices for households and other user categories, effective from July 1, 2025.

This increase adds to the financial burden already faced by inflation-stricken citizens, with domestic gas rates going up by as much as 50% in certain slabs.

As per the notification, household gas prices will now fall between Rs200 and Rs4,200 per MMBTU, depending on usage.

Consumers are now classified under two main categories: protected and non-protected. Protected users, typically lower-income households, will be charged between Rs200 and Rs350 per MMBTU.

In contrast, non-protected users will pay significantly higher rates ranging from Rs500 to Rs4,200 per MMBTU.

OGRA has also introduced fixed monthly charges. Protected consumers will pay Rs600, while non-protected users will be billed Rs1,500.

Those in the non-protected category who consume more than 1.5 MMBTU per month will face a higher fixed charge of Rs3,000.

The updated tariff also covers various institutional and commercial sectors. Government offices, semi-government bodies, hospitals, and schools will be charged Rs3,175 per MMBTU. Tandoors (traditional bread ovens) will pay rates between Rs110 and Rs700 per MMBTU, based on consumption levels.

Other new rates include:

This development follows the Economic Coordination Committee’s recent approval of a revised gas pricing model, which includes an average 10% tariff increase for bulk, industrial, and power sector consumers.

While the ECC kept household gas unit prices unchanged, it allowed a rise in fixed monthly charges for domestic users to help cover the cost of maintaining gas infrastructure.

Officials believe these changes will help boost revenue for gas distribution companies and lessen the burden of energy subsidies, aligning with Pakistan’s ongoing economic reform commitments under the IMF programme.

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