OGRA slashes SNGPL gas price by 3% and SSGCL by 8% for FY2025-26

ISLAMABAD: Gas consumers may see some price relief in the months ahead as the Oil and Gas Regulatory Authority (OGRA) has reduced SNGPL’s prescribed price to Rs1,804.08 per MMBTU with a 3% decrease, and lowered SSGCL’s prescribed price to Rs1,549.41 per MMBTU after an 8% reduction for FY 2025-26.

According to OGRA’s latest determination, the new average prescribed price for SNGPL has been fixed at Rs1,804.08 per MMBTU, marking a 3% reduction, while SSGCL’s prescribed price has been set at Rs1,549.41 per MMBTU, reflecting an 8% cut from the current rate.

These prescribed prices form the base on which consumer gas tariffs are calculated, and any reduction opens the possibility for lower bills, subject to the federal government’s final decision on category-wise sale prices. For now, OGRA has sent its determination to the government for advice, after which consumer tariffs may be adjusted. Until the government issues its direction, existing consumer gas prices will remain unchanged.

OGRA said it reached the revised figures after “carefully reviewing” the revenue requirements of both gas utilities and rationalising their demand by optimising costs and revenues. The regulator also included the impact of deferred LNG cargoes of Pakistan LNG Limited, a move that, according to the authority, brings direct financial benefit to gas consumers.

As part of efforts to stabilise the gas sector’s finances and reduce the stock of circular debt, OGRA also adjusted Rs13,565 million for SNGPL and Rs47,315 million for SSGCL, in line with federal cabinet decisions issued on July 1, 2024.

While consumer gas tariffs have not yet changed, OGRA’s downward revision of prescribed prices raises expectations that domestic and commercial users could eventually see lower bills — depending on whether the federal government passes on the full relief to consumers when setting final category-wise sale prices.