Ogra recommends reduction in SNGPL, SSGC gas prices for FY2025

• Proposes reduction in gas tariffs by 3% for SNGPL, 7% for SSGC for FY25.
• He says the move follows cost, revenue streamlining under the RERR review.
• It clarifies that the final price change is not OK, the current tariffs remain in effect.

The Oil and Gas Regulatory Authority (OGRA) on Tuesday proposed a cut in gas tariffs for consumers, proposing a 3% cut for Sui Northern Gas Pipelines Limited (SNGPL) and 7% for Sui Southern Gas Company (SSGC) for the current financial year.

According to the determination, SNGPL’s average prescribed price was provisionally fixed at Rs 1,804.08 per million British thermal unit (mmbtu), while SSGC’s tariff was recommended at Rs 1,549.41/mmbtu.

According to Ogra, the move is in line with its mandate to protect consumer interests and promote fiscal discipline.

The authority said the review of estimated revenue requirements (RERR) for both SNGPL and SSGC involved careful rationalization including cost and revenue optimization.

The impact of deferred loads in the case of Pakistan LNG Limited was also considered for the benefit of consumers.

The regulator clarified that no final change in natural gas prices has yet been approved, urging the media to avoid false reports.

“Since the existing revenue in SNGPL and SSGC networks meets the revenue requirement for the financial year 2025-26 as determined by Ogra on November 24, 2025, no change in gas prices has been finalised,” the authority said in a statement.

The federal government has been asked to advise on selling prices by category. Until this guidance is issued, existing gas tariffs will remain in place.

Ogra also adjusted earlier shortfalls in the gas circular debt of Rs 13.565 billion for SNGPL and Rs 47.315 billion for SSGC, according to a federal cabinet directive dated July 1, 2024.

The authority emphasized that the recommended reductions are intended to ensure that consumers benefit from the efficient operation of natural gas utilities while maintaining fiscal balance and affordability.