The Petroleum Division is collaborating with international audit firm KPMG to identify which categories of domestic consumers will face a gas price hike starting July 1, 2025. The decision is part of Pakistan’s efforts to align with commitments under the International Monetary Fund (IMF) program.
KPMG’s analysis will guide the federal government in revising gas tariffs to address financial shortfalls faced by Sui gas companies and to move towards full cost recovery in the energy sector.
On May 20, 2025, the Oil and Gas Regulatory Authority (OGRA) set new prescribed prices for FY2025–26. The rate for Sui Northern Gas Pipelines Limited (SNGPL) was raised to Rs. 1,895.50 per MMBtu—primarily due to increased use of re-gasified LNG. In contrast, the rate for Sui Southern Gas Company (SSGC) was reduced by Rs. 103.95, bringing it down to Rs. 1,658.55 per MMBtu.
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SNGPL is currently facing a revenue shortfall of Rs. 40 billion, while SSGC is operating with a surplus.
At present, a cross-subsidy of Rs. 140 billion is being provided by industrial, commercial, captive power, CNG, bulk, and high-end domestic consumers. This subsidy supports protected and lower-tier domestic users, helping them afford subsidized gas prices.
The upcoming tariff adjustments will be crucial for meeting IMF-mandated reforms and ensuring the financial viability of Pakistan’s energy infrastructure.
