Gas companies seek 135pc tariff raise for year 2025-26

ISLAMABAD - The gas consumers should be ready for another hike, as Sui Northern Gas Pipe­lines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have sought the nod of Oil and Gas Regulatory Authori­ty for a hike of up to 135 percent in the prescribed gas tariff for the upcoming fiscal year 2025-26. In two separate petitions filed with Ogra by the Sui Companies, for the deter­mination of prescribed gas prices for the fiscal year 2025-26, SNGPL has sought an average price increase of 58 per cent (in­cluding a raise of Rs707.37 per MMBTU for supply of indigenous gas and a hike of Rs 317.

72/MMBTU for LNG supply), while SSGCL has sought an increase of 135 per cent or Rs2,375/ MMBTU, which includes the recovery of past shortfalls. In its petition, SNGPL has requested the OGRA for approval to raise its pre­scribed gas price by 58 percent and set it at 2803 per Million British Thermal Unit (MMBTU) (including Rs2,485.72/MMBTU for indigenous gas supply and Rs 313.



72/MMBTU) against the exist­ing 1778.35/MMBTU, citing a revenue shortfall of Rs207.4 billion and rising costs of both indigenous and Re-gas­ified Liquefied Natural Gas (RLNG).

US stocks down as trade war with China escalates SNGPL also highlights hike in the cost of indigenous gas, projected at Rs231.604 billion, as well as the cost of RLNG diver­sion, estimated at Rs299.936 billion.

Ad­ditionally, operating costs have risen sig­nificantly, with SNGPL citing Rs37.007 billion for human resource and other ex­penses. Financing costs related to late payments also contribute to the request for the price increase, with the surcharge totalling Rs97.

15 billion. Moreover, SNG­PL has proposed substantial capital ex­penditures for expanding the gas net­work, including the laying of pipelines and further measures to control unac­counted for gas (UFG). The petitioner also said that prior year shortfall up to FY2024-25 is Rs478.

54 billion which be­comes Rs685.976 billion after including current year shortfalls. Besides, the peti­tioner has claimed RLNG cost of service at Rs69.

889 billion (i.e. Rs317.

72/mmb­tu) for FY2025-26. Meanwhile, SSGCL has filed a petition seeking the tariff to be increased by 135 per cent to Rs4,137.49 per MMBTU from the existing Rs 1762.

51/MMBTU, driven by a total revenue shortfall of Rs498.76 billion from previous years. The company attributes the hike to the increasing cost of RLNG and the dwindling supply of in­digenous gas.

The company has cited a revenue requirement of Rs883.544 bil­lion for the upcoming fiscal year. SSGCL’s petition also highlights the significant in­vestments needed to maintain and ex­pand the gas distribution network, with proposed capital expenditures focused on laying new pipelines, expanding distribu­tion systems, and enhancing infrastruc­ture across Sindh and Balochistan, where gas supplies are increasingly scarce.

Public hearings on SNGPL’s petition are scheduled for April 18 in Lahore and April 28 in Peshawar. While public hearings for SSGCL’s petition will take place on April 21 in Karachi and April 23 in Quetta. Interior minister directs blocking passports of deported Pakistanis Tags: gas companies seek tariff.