OGRA raises Oct RLNG prices by up to 15.27%

ISLAMABAD:

OGRA on Friday notified the increase in RLNG rates across the transmission and distribution networks of the two Sui gas companies, reversing a 20% reduction granted for September.

OGRA notified an increase of 13.89% to 15.27% in RLNG prices for October 2026 for sales by Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).

The increase follows a 20% reduction in RLNG prices for September and has been attributed mainly to higher crude oil prices. The revised rates took effect from October 1 under the federal government's policy guidelines and were determined on the basis of two LNG cargoes imported by Pakistan State Oil (PSO).

The average delivered ex-ship price of LNG for the two cargoes in October stood at $10.75 per million British thermal units (MMBtu), compared with $10.06 per MMBtu in September, $12.12 per MMBtu in August and $18.96 per MMBtu in July.

The increase is expected to have a significant impact on fuel costs for power generation in December. RLNG-based power generation cost Rs40 per unit in September, when the average RLNG import price stood at $10.06 per MMBtu, compared with $10.75 per MMBtu in October.

According to OGRA's notification, the RLNG sale price for SNGPL's transmission network increased by 13.89% to $15.9357 per MMBtu in October, from $13.99 per MMBtu in September.

For the company's distribution network, the price rose by 14.01% to $17.3259 per MMBtu, compared with $15.196 per MMBtu in the preceding month.

For SSGCL, the RLNG sale price at the transmission stage increased by 15.25% to $14.5339 per MMBtu, against $12.611 per MMBtu in September. Its distribution-stage price rose by 15.27% to $16.3959 per MMBtu, from $14.22 per MMBtu.

SSGCL, based in Karachi, supplies gas to consumers in Sindh and Balochistan. Its distribution-stage system losses stand at 12.55%, compared with around 10.6% last year.

Meanwhile, Lahore-based SNGPL supplies gas to consumers in Punjab and Khyber Pakhtunkhwa. Its distribution-stage system losses have also reached nearly 9%, compared with 7.47% in October last year.

The revised RLNG prices will remain applicable from October 1, 2026, according to OGRA.