Gas utilities ask OGRA to raise prices for FY27

ISLAMABAD: The two state-owned gas utilities have asked the Oil and Gas Regulatory Authority to raise their average prescribed gas prices for the fiscal year 2026-27 and to apply the new rates from July 1, more than four months before the petitions were filed.

Sui Northern Gas Pipelines Limited wants an increase of Rs10 per million British thermal units, which would take its average prescribed price to Rs1,712.40 from Rs1,702. Sui Southern Gas Company has sought Rs366.75 per MMBtu, taking its price to Rs2,071.75.

Minute Mirror reported that the two figures in the SNGPL petition amount to an increase of Rs10.40 per MMBtu, though the company described the rise as Rs10.

SNGPL included Rs60.147 billion in LNG service costs in its request, with LNG priced at Rs471.16 per MMBtu. It told the regulator that limited local gas supplies in winter would force it to arrange additional imports, and estimated it would need 16 LNG cargoes for the season.

Minute Mirror reported the Petroleum Division's estimate at 24 cargoes for the SNGPL network, covering household supplies and power generation, eight more than the utility's figure.

Both companies cited higher international crude oil prices as a reason for the increase.

OGRA will hold hearings on the two petitions before deciding. The regulator's prescribed prices are not consumer tariffs; any change in what households and businesses pay would need a separate government decision and notification.

The filings come as domestic production falls and reliance on imported LNG grows. Minute Mirror reported that uncertainty over shipments from Qatar has added to concern about securing supplies for winter. Since September, household consumers have been limited to set cooking hours in the morning, afternoon and evening.

The government is preparing a winter gas management plan covering November 2026 to February 2027. Under the proposed plan, homes would get priority while supplies to industry, captive power plants, fertiliser producers and CNG stations could be curtailed if shortages are severe or LNG deliveries fall short.

Gas-sector circular debt rose by Rs344 billion to Rs3.631 trillion by June 30, 2026, according to Petroleum Division figures presented in the National Assembly and reported by Minute Mirror.