OGRA Approves Gas Price Increases in Pakistan

The Oil and Gas Regulatory Authority (OGRA) has approved significant increases in gas prices for the current fiscal year, with an 8.71% rise for Sui Northern Gas Pipelines Limited (SNGPL) and a 25.78% increase for Sui Southern Gas Company Limited (SSGCL). The average gas price will be set at Rs 1,778.35 per MMBTU for SNGPL and Rs 1,762.51 per MMBTU for SSGCL. This decision has been forwarded to the federal government, which will provide final approval. The hikes aim to address financial requirements of Rs 527.55 billion for SNGPL and Rs 319.78 billion for SSGCL. The price adjustments follow public hearings and are seen as a response to conditions set by the International Monetary Fund (IMF) as part of its loan program. Implementation of the new prices is expected to take effect from January 1, 2025, pending government advice.