SNGPL, SSGC Seek Higher Gas Prices From OGRA
SNGPL and SSGC have asked the Oil and Gas Regulatory Authority (OGRA) to approve higher gas prices for the current financial year. SNGPL wants a small rise of Rs10 per million British thermal units (MMBtu), while SSGC has asked for a much larger increase of Rs366.75 per MMBtu.
The two utilities filed separate petitions with the regulator, and both want the new rates to apply from July 1. SNGPL has proposed an average prescribed price of Rs1,712.40 per MMBtu, up from Rs1,702. SSGC has proposed Rs2,071.75 per MMBtu.
OGRA will hear the cases first, and any change in consumer prices will still need a government decision and notification. Geo News reported the petitions on Thursday.
Higher gas prices driven by LNG costs
SNGPL has put liquefied natural gas (LNG) service costs of Rs60.147 billion into its proposed price. The company puts the cost of LNG services at Rs471.16 per MMBtu.
The utility has warned that limited local gas in winter will force extra arrangements to meet demand. It estimates that 16 LNG cargoes will be needed during the season to keep supplies flowing.
The Petroleum Division puts the winter need higher: 24 LNG cargoes for the SNGPL network, covering households and power generation.
Both companies point to higher international crude oil prices, which also push up the cost of gas.
Falling local output adds to the pressure
Pakistan’s home-grown gas output has been falling as mature fields run down, forcing the country to lean harder on imported LNG and exposing the energy sector to world price swings and supply shocks.
Uncertainty over shipments from Qatar, amid the regional crisis, has added to the strain as the government works to secure enough fuel before winter.
The squeeze has already forced SNGPL to keep its ban on new gas connections in place indefinitely, leaving households that want a new connection facing a long wait.
In September, household supplies were restricted to set morning, afternoon and evening cooking hours, since the system could not meet round-the-clock demand.
Winter plan puts homes first
The government is preparing a winter gas management plan for November 2026 to February 2027, giving domestic consumers priority. Supplies to industry, captive power plants, fertiliser producers and compressed natural gas (CNG) stations could be cut back if shortages turn severe or LNG deliveries fall short.
OGRA has already moved RLNG prices this year. In August, it raised them by up to 34.6 per cent for July, after only five LNG cargoes arrived that month. Feature Pakistan reported in October that OGRA had raised RLNG prices, and the new petitions show the pressure has not eased.
Circular debt keeps growing
The financial strain on the gas sector is another concern. Gas-sector circular debt rose by Rs344 billion to Rs3.631 trillion by June 30, 2026, according to figures the Petroleum Division presented in the National Assembly.
The pile of unpaid bills has made it harder to run a stable supply system. The power sector alone owes SNGPL Rs169 billion, according to earlier reporting on the dues.
PSO has also set out a circular debt plan with the IMF, which shows how the debt problem now runs across the whole energy chain, from gas and power to oil marketing. A planned LPG strike was postponed after talks, while petrol and diesel prices were cut on November 12. Gas, by contrast, is moving the other way, with both utilities now asking for more.
What the prescribed price means for bills
The prescribed price is the average rate OGRA sets to meet a utility’s estimated revenue need. It is not the price charged to consumers, which needs government advice and a notification before it can change.
That gap matters for households. In July, the government kept existing consumer gas tariffs in place even though OGRA had set lower prescribed prices for the two utilities. The regulator had fixed SNGPL’s prescribed price at Rs1,718.96 per MMBtu and SSGC’s at Rs1,691.24 for 2026-27.
OGRA has already listed a public hearing notice dated November 11, 2026, to consider SNGPL’s review of its revenue requirement and prescribed price for 2026-27, according to the regulator’s own petitions page. That notice confirms the process is formally under way.
OGRA must first hold hearings and issue its determination, and only then will the government decide whether household and business tariffs change, and by how much. Until then, the July tariffs stay in place.
What happens next
OGRA will hold hearings on the petitions, testing the utilities’ cost claims, including LNG service costs and winter cargo numbers. If it accepts them, the government must choose: pass the cost on, absorb part of it, or find savings elsewhere. The decision will land in mid-winter, when demand peaks.
Frequently asked questions
What are SNGPL and SSGC asking OGRA for?
SNGPL has asked for an increase of Rs10 per MMBtu, taking its average prescribed price to Rs1,712.40. SSGC has asked for Rs366.75 more per MMBtu, taking its proposed price to Rs2,071.75.
Will household gas bills rise now?
No. The prescribed price is not the consumer tariff. OGRA must first hold hearings and issue a determination, and the government must then decide and notify any change in the prices households pay.
Why do the utilities want higher prices?
They cite LNG service costs, higher international crude oil prices, falling local gas output and the cost of arranging extra supplies for winter. SNGPL has put LNG service costs of Rs60.147 billion into its petition.
How many LNG cargoes does Pakistan need this winter?
SNGPL estimates that 16 LNG cargoes will be needed during the season. The Petroleum Division puts the winter need on the SNGPL network at 24 cargoes, covering households and power generation.
When will OGRA decide?
OGRA will hold hearings on the petitions before making its determination. Any change in consumer gas prices will then depend on a government decision and notification.
