Gas Prices to Rise Again: Ogra Approves Up to 7% Hike for 2025–26

Pakistan’s energy sector faces another big price shake-up as the Oil and Gas Regulatory Authority (Ogra) approves up to a 7% increase in prescribed natural gas prices for the upcoming fiscal year. The move aims to help SNGPL and SSGCL meet a combined revenue requirement of Rs. 886 billion for 2025–26.

Ogra’s New Gas Price Determination

Ogra has now sent its latest decision to the federal government, outlining significant increases for both major gas companies.

SSGCL Price Increase

• Revenue requirement set at Rs. 370 billion (up from Rs. 354 billion last year)

• New prescribed price: Rs. 1,777 per mmBtu

• Percentage increase: 7.11%

• Per-unit jump: Rs. 118

SNGPL Price Increase

• Revenue requirement: Rs. 516 billion

• New prescribed price: Rs. 1,853 per mmBtu

• Percentage increase: 5%

• Per-unit jump: Rs. 87 (previously Rs. 1,766 per unit)

Earlier Price Hikes Already Burdening Consumers

This fiscal year started with the government:

• Raising fixed gas charges by 50%

• Increasing per-unit rates for industry, power generation & bulk consumers by up to 17%
  These moves added Rs. 85 billion in extra consumer costs — primarily to meet IMF targets.

What Happens Next? Government’s Big Choice

The government now faces a key decision:

• Raise consumer-end gas prices again, OR

• Adjust fixed charges
  Under commitments with the IMF, Pakistan must continue semi-annual gas tariff adjustments, including all costs tied to imported RLNG.

What the Gas Companies Asked For

• SNGPL had requested a hike of 10.7%

• SSGCL demanded 7.6%
  Ogra approved lower increases for both.
  The government usually notifies uniform gas rates nationwide, based on the higher of the two prescribed prices, with the difference generating a Gas Development Surcharge (GDS) for provinces.

Why Prices Keep Changing So Often

Ogra revises prescribed prices twice a year, and the government adjusts consumer prices accordingly. The regulator has urged that all categories must pay at least the average cost of service:

• Rs. 1,853 per mmBtu (SNGPL)

• Rs. 1,777 per mmBtu (SSGCL)
  This ensures full cost recovery and prevents the circular debt, already over Rs. 3 trillion, from growing further.

IMF Oversight Continues

The government has pledged to the IMF that it will:

• Issue timely biannual gas tariff notifications

• Avoid delays that worsen circular debt

• Follow Ogra’s recommendations strictly
  Under Ogra law, the federal government must respond within 40 days and notify changes in the Official Gazette.

Conclusion

With another gas price hike approved, households, industries and businesses are bracing for higher bills in 2025–26. As Pakistan continues aligning with IMF requirements, energy affordability remains a major challenge — and more adjustments in the coming months appear inevitable.

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