Pakistan is likely to witness a major increase in gas prices as leading gas utilities have submitted requests for significant tariff hikes for the fiscal year 2026-27. The Oil and Gas Regulatory Authority (Ogra) is set to conduct public hearings to review these proposals, which could directly impact millions of consumers across the country.
Sui Northern Gas Pipelines Limited (SNGPL) has requested a tariff increase of approximately 21%, while Sui Southern Gas Company Limited (SSGCL) has sought a much higher increase of around 121%. These adjustments are being proposed to meet revenue requirements and address the growing financial burden faced by the gas sector.
The hearings are scheduled to take place in Lahore and Karachi on May 12 and 13. Ogra is legally bound to finalize its determination before the end of June, ensuring that revised tariffs can be implemented from July 1, 2026.
One of the key reasons behind the proposed increase is the rising cost of liquefied natural gas (LNG), which has become more volatile due to ongoing geopolitical tensions in the Middle East. Additionally, Pakistan has committed to the International Monetary Fund (IMF) to regularly adjust gas prices in order to control the growing circular debt, which has already exceeded Rs3 trillion.
Another important aspect discussed in the proposal is the reduction of Unaccounted-for-Gas (UFG) losses. Ogra’s consultant has recommended a gradual decrease in UFG allowances over the next five years, aiming to improve efficiency and reduce losses within the system.
Experts believe that if these tariff increases are approved, it could lead to higher utility bills for domestic consumers, increased production costs for industries, and overall inflationary pressure on the economy.
The final decision by Ogra will play a crucial role in shaping Pakistan’s energy pricing structure and determining how the burden of rising costs is shared between the government, companies, and the public.
