Rising utility bills: Govt decides against gas price cut for consumers
The government has decided not to reduce gas prices for the fiscal year 2026-27. The decision means domestic, commercial and other consumers will continue paying the existing gas tariffs. The government has decided not to pass the reduction on to consumers.
According to a senior official of the Petroleum Division, the Oil and Gas Regulatory Authority (OGRA) has reduced the average prescribed price for Sui Southern Gas Company and Sui Northern Gas Pipelines Limited. The rate has been lowered from Rs1,793 per MMBTU to Rs1,705 per MMBTU.
The reduction had raised expectations that consumers would receive relief in their monthly gas bills. However, the government has chosen to keep gas tariffs unchanged despite the lower prescribed rate.
Officials said there will be no immediate reduction in gas bills for any consumer category. Existing prices for household, commercial and other users will remain in place.
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The government believes that the financial condition of gas companies is already under pressure. Officials say lowering consumer tariffs could further weaken their financial position.
Sources added that the government wants to improve the financial health of both gas companies. It also aims to keep the circular debt burden under control by maintaining current gas prices.
According to sources, the government has formally informed the International Monetary Fund (IMF) about the decision. The move is part of its broader financial management strategy for the energy sector.
The decision may disappoint consumers who were expecting lower gas bills after OGRA reduced the prescribed rate. However, the government appears to be focusing on strengthening gas companies and managing circular debt before offering any relief.
