Gas consumers throughout Pakistan could face a significant monetary burden beginning July, as each Sui Northern Gas Pipelines Restricted (SNGPL) and Sui Southern Gas Firm Restricted (SSGCL) have filed requests for steep will increase in gasoline tariffs for the subsequent fiscal 12 months.
In accordance to obtainable paperwork, each SNGPL and SSGCL have filed petitions with the Oil and Gas Regulatory Authority (OGRA) for the willpower of latest gasoline costs for the fiscal 12 months 2025–26.
SNGPL has requested OGRA’s approval to increase the common prescribed price of pure gasoline to Rs. 2,485.72 per Million British Thermal Models (MMBTU) for FY 2025–26. The proposed price hike is primarily pushed by a income shortfall of Rs. 207,435 million and a major rise in the price of gasoline, together with each indigenous gasoline and Regasified Liquefied Pure Gas (RLNG). The petition highlights an increase in the price of indigenous gasoline, projected at Rs. 231,604 million, and the price of RLNG diversion, estimated at Rs. 299,936 million. Working prices have additionally surged, with SNGPL citing Rs. 37,007 million for HR and different bills. Financing prices associated to late funds additional contribute to the request, with a surcharge totaling Rs. 97,150 million. Furthermore, SNGPL has proposed substantial capital expenditures to develop the gasoline community, together with the laying of pipelines and measures to management unaccounted-for gasoline (UFG).
Public hearings for the SNGPL petition can be held on April 18, 2025, on the firm’s Head Workplace in Lahore, and on April 28, 2025, on the Serena Resort in Peshawar. These hearings will present stakeholders a chance to voice their issues concerning the proposed hike.
In the meantime, SSGCL has filed its personal petition, requesting a price increase to Rs. 4,137.49 per MMBTU, which incorporates restoration of the unrecouped shortfall from earlier years, totaling Rs. 498,764 million. This increase can also be attributed to the rising value of RLNG and the declining availability of indigenous gasoline. The corporate has cited a income requirement of Rs. 883,544 million for the upcoming fiscal 12 months. SSGCL’s petition additionally emphasizes the necessity for vital funding to preserve and develop the gasoline distribution community, with proposed capital expenditures targeted on laying new pipelines, increasing distribution techniques, and enhancing infrastructure throughout Sindh and Balochistan, the place gasoline provides are more and more constrained.
A public listening to for SSGCL’s petition is scheduled for April 21, 2025, on the firm’s Head Workplace in Karachi, adopted by one other on April 23, 2025, on the Serena Resort in Quetta.
It’s pertinent to point out that the increase in gasoline costs is predicted to put further stress on home consumers, with gasoline payments likely to rise considerably within the coming months. Small companies that depend on gasoline for operations are additionally anticipated to face monetary pressure, with some presumably compelled to cut back or shut down. Moreover, the economic sector—significantly energy-intensive industries—may even see rising manufacturing prices, doubtlessly main to slower progress and job cuts.
As Pakistan’s gasoline sector grapples with these monetary challenges, each SNGPL and SSGCL are looking for to get better prices and make sure the sustainability of gasoline provide and infrastructure. Nevertheless, the proposed hikes are likely to have a major impression on consumers already burdened by excessive vitality prices. Whether or not these will increase are important to preserve gasoline infrastructure or if various options exist to cut back the monetary pressure on the general public stays a key query.
The upcoming public hearings will play a important function in figuring out the ultimate determination on the proposed tariff hikes, and shopper participation can be very important to guarantee their issues are heard and addressed within the regulatory course of.
