Pakistan's gas consumers may face higher prices as Sui Northern and Sui Southern have approached OGRA with requests to increase average gas rates.

Both companies have submitted separate applications to the Oil and Gas Regulatory Authority (OGRA), seeking approval to implement the proposed increases from July 1, 2026.

Sui Northern proposes Rs10.40 increase

Sui Northern Gas Pipelines Limited (SNGPL) has requested an increase of Rs10.40 per million British thermal units (MMBtu).

The company wants its average prescribed gas price to rise from Rs1,702 to Rs1,712.40 per MMBtu.

SNGPL has also included Rs60.147 billion in liquefied natural gas (LNG) service costs in its proposed price calculation.

According to its application, LNG costs are estimated at Rs471.16 per MMBtu.

Sui Southern seeks a bigger increase

Sui Southern Gas Company (SSGC) has requested a significantly higher increase of Rs366.75 per MMBtu.

The company has proposed raising its average prescribed gas price to Rs2,071.75 per MMBtu.

Winter demand and LNG costs cited as reasons

SNGPL has stated that limited availability of locally produced gas during winter will make it necessary to arrange additional supplies.

The company estimates that it will need 16 LNG cargoes to meet the additional demand during the winter season.

Both gas companies have also cited rising international crude oil prices as a reason behind their requests for higher gas rates.

OGRA to review applications

OGRA will examine the applications and conduct hearings before making a final decision on the proposed gas prices.

The requested increases are not yet approved. The regulator's decision will determine the revised prescribed gas prices for the companies.