Quarterly gas pricing bill introduced in Senate after daily petrol shocks
The proposed legislation would allow the government to adjust gas prices every three months based on local and imported gas costs. The bill has also raised concerns because it proposes removing public hearings before certain price changes.
New system for quarterly gas pricing
The Oil and Gas Regulatory Authority (OGRA) (Amendment) Bill, 2026, was presented in the Senate by Minister of State for Interior Tallal Chaudhry. It seeks to add a new Section 8A to the OGRA Ordinance, 2002.
Under the proposed system, natural gas companies will submit their revenue requirements every three months. These details will cover wellhead gas prices and the cost of imported gas, including Re-Gasified Liquefied Natural Gas (RLNG).
OGRA will examine the submitted information and send its recommendations to the federal government. The government will then have 30 days to determine the minimum charges and selling prices for different categories of consumers before publishing them in the official gazette.
Public hearings may not be required
The proposed bill also gives the federal government the authority to ask OGRA to delay some or all quarterly price adjustments. These adjustments could instead be included in the next six-monthly price determination.
One of the most debated parts of the bill concerns public hearings before gas prices are revised. The proposed amendment to Section 9 states: “Provided that public hearing shall not be held by the Authority for revision of prescribed prices under Section 8A.”
According to the bill’s statement of objects and reasons, the main purpose is to bring gas prices closer to actual market costs. It also aims to account for changes in the rupee-dollar exchange rate, provide more accurate price signals and prevent further growth in circular debt in the gas sector.
The government says the proposed changes could improve the financial and operational stability of the gas supply system. If approved by Parliament, the legislation will take effect immediately.
PPP senators oppose proposed PPL office relocation
During the same Senate session, Pakistan Peoples Party (PPP) Senator Waqar Mehdi raised concerns about a proposal to move Pakistan Petroleum Limited’s (PPL) head office from Karachi to Islamabad. He warned that shifting federal offices and major organisations away from Karachi could become a growing trend.
“The head office has been in Karachi since around 1951. Now attempts are being made to shift it to Islamabad through the board of directors, whose members are not elected representatives of the people,” Mehdi said.
He said the company currently pays around Rs4 million in monthly rent for its Karachi office. However, shifting the head office could cost billions of rupees and create serious problems for employees.
According to the senator, around 500 officers and employees from Sindh work at PPL and could face financial and family difficulties if the office is moved. He also argued that the company’s main operations, including exploration, imports and related infrastructure, are connected to Karachi.
“From the federal government’s conduct, it seems tomorrow they will talk of shifting Karachi’s sea to Islamabad as well,” Mehdi remarked.
Mehdi demanded that the proposed relocation decision be withdrawn. PPP Senator Zamir Ghumro also opposed the move and raised questions about the legal authority behind it.
Questions raised over CCI authority
Senator Zamir Ghumro said oil and gas matters fall under the Council of Common Interests (CCI). He questioned whether the PPL head office could be shifted without the council’s approval.
“How can you shift it without the will of the CCI?” he asked.
Responding to the concerns, Tallal Chaudhry said PPL was a company and its board of directors had repeatedly stated that leaving its existing office had become necessary. The debate over the proposed relocation continued to highlight differences over the decision and the authority responsible for approving it.
The quarterly gas pricing bill could change how frequently gas prices are reviewed in Pakistan. However, removing public hearings may raise concerns about transparency and consumer representation.
At the same time, the proposed PPL relocation has created questions about Karachi’s economic importance and the role of the Council of Common Interests. Both issues will require careful consideration before final decisions are made.
Also read: Electricity bills may rise sharply during three winter months in Pakistan
