Gas companies seek price hike from July to cover shortfalls

Two major gas utilities file requests to raise consumer prices significantly. Public hearings in coming weeks.

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Pakistan’s two major gas utilities have filed requests to raise consumer prices significantly from July, citing projected financial shortfalls and revenue requirements for the 2025–26 fiscal year.

According to regulatory filings, Sui Northern Gas Pipelines Ltd (SNGPL) has requested an average increase of Rs735.59 per million British thermal units (MMBTU), while Sui Southern Gas Company Ltd (SSGC) is seeking a hike of Rs2,443 per MMBTU, inclusive of previous deficits, Express News.

SNGPL has estimated total revenue requirements of Rs700.97 billion and a shortfall of Rs207.43 billion. The company has proposed a new average consumer price of Rs2,485.72 per MMBTU.

SSGC has submitted a revenue requirement of Rs 883.54 billion, with a shortfall of Rs44.33 billion, and requested to set the average gas tariff at Rs4,137.49 per MMBTU.

Public hearings on the applications will be held in Lahore and Peshawar for SNGPL on April 18 and 28, and in Karachi and Quetta for SSGC on April 21 and 23.

The proposed increases come amid inflationary pressures and continued reforms in the energy sector as Pakistan works to reduce circular debt and meet IMF fiscal targets.