Pakistan’s two major gas utilities have sought steep increases in gas tariffs for the fiscal year 2026–27 to meet their projected revenue requirements, placing further pressure on consumers already facing high energy costs.
The Oil and Gas Regulatory Authority has scheduled hearings on the proposed revisions for May 12–13 in Lahore and Karachi. The requests include an approximately 21% hike from Sui Northern Gas Pipelines Limited and a massive 121% increase sought by Sui Southern Gas Company.
Earlier, OGRA postponed hearings in April due to volatility in global liquefied natural gas (LNG) prices amid geopolitical tensions in the Middle East. However, regulatory timelines require a final determination at least 40 days before June 30, allowing the government to adjust consumer tariffs before the new fiscal year begins on July 1.
Meanwhile, consultancy firm KPMG has recommended gradual reductions in allowable unaccounted-for gas (UFG) losses for both utilities over the coming years, along with differentiated allowances based on operational challenges. Current system losses remain significantly higher in SSGC compared to SNGPL.
SNGPL has also proposed raising its prescribed gas price from Rs1,853 to Rs2,084 per mmBtu next year, citing LNG diversion costs and rising supply expenses.
