Gas pricing remains the central issue as Pakistan navigates volatile global LNG markets. Despite a sharp rise in international LNG prices, SNGPL and SSGCL have kept domestic gas tariffs unchanged.
This stability creates a price gap because utilities are now relying more on cheaper local gas instead of expensive imported RLNG. Authorities, including OGRA, are calculating the financial impact of this shift, specifically the extra margins generated by avoiding high-cost imports while maintaining existing consumer prices.
Imported RLNG has historically been significantly more expensive than domestic gas, meaning every unit replaced reduces procurement costs.
With global LNG prices surging after supply disruptions from Qatar, the avoided cost has widened further.
Earlier, Pakistan had already deferred 20–29 LNG cargoes due to high import prices and weak demand, reflecting concerns over affordability.
The suspension of RLNG supplies has effectively forced a pricing advantage toward domestic production. However, instead of passing immediate savings to consumers, prices are being held steady, allowing authorities to assess accumulated financial gains.
At the same time, the government has frozen new RLNG connections, preventing additional demand at current price levels.
![Muslim pilgrims gather at the top of the rocky hill known as the Mountain of Mercy, on the Plain of Arafat, during the annual Hajj pilgrimage, near the holy city of Mecca, Saudi Arabia. [Rafiq Maqbool/AP Photo]](https://mmnews.tv/wp-content/uploads/2025/04/Mount-Arafat.jpg)
