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Gas Prices May Increase as SNGPL and SSGCL Seek Higher Rates for FY2026-27

Gas Prices May Increase as SNGPL and SSGCL Seek Higher Rates for FY2026-27

Gas prices in Pakistan could increase in the coming months as the country’s two state-owned gas distribution companies have requested higher prescribed rates for the financial year 2026-27. The proposals have been submitted to the Oil and Gas Regulatory Authority (OGRA), seeking adjustments that would apply retrospectively from July 1, 2026.

Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) have requested separate increases in their average prescribed gas prices. If approved, the proposed revisions could affect the overall cost of gas supply and potentially increase financial pressure on consumers.

According to the submitted proposals, SNGPL has requested an increase of Rs. 10 per million British thermal units (MMBtu). This would raise the company’s average prescribed gas price from the existing Rs. 1,702 to Rs. 1,712.40 per MMBtu.

Although the requested adjustment by SNGPL is relatively small, SSGCL has proposed a considerably higher increase. The company has asked OGRA to raise its average prescribed price by Rs. 366.75 per MMBtu.

Under the SSGCL proposal, the average prescribed gas price would increase from Rs. 1,705 to Rs. 2,071.75 per MMBtu, according to the figures provided in the request.

The difference between the two companies’ proposals highlights the varying pricing requirements being presented by Pakistan’s regional gas utilities.

OGRA will review the applications before making a decision on the proposed adjustments. The regulator is responsible for examining gas pricing requests and determining whether the requested increases are justified under the applicable regulatory framework.

The proposed retrospective implementation date of July 1 means that any approved revision would apply from the beginning of the FY2026-27 financial year. However, the final impact will depend on OGRA’s decision and any subsequent government notification regarding consumer gas tariffs.

A change in prescribed gas prices does not automatically mean that every household or business will face an identical increase in monthly bills. Consumer rates can vary according to applicable tariff categories, consumption levels and government decisions.

Nevertheless, the proposals could become another important development for households, commercial establishments and industrial consumers that rely on natural gas for their daily operations.

Gas pricing remains a significant economic issue in Pakistan, where changes in energy costs can influence household budgets, business expenses and industrial production. Any increase in the cost of gas supply may also add pressure to businesses already managing rising operational expenses.

The OGRA review will therefore be closely watched by consumers and industries across the country as the regulator considers the requests submitted by SNGPL and SSGCL for FY2026-27.

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