SNGPL demands major hike in gas prices

Gas consumers in Pakistan may face another tough challenge as Sui Northern Gas Pipelines Limited (SNGPL) has asked for a record increase of Rs. 291 per MMBTU in gas prices.

The proposal came up during a public hearing chaired by OGRA Chairman Masroor Khan. SNGPL officials argued that the hike was needed to cover “gas transportation costs.”

However, the suggestion was strongly criticized by industrial users and other participants, who called it an unbearable burden for both businesses and ordinary households.

Chairman OGRA tried to ease concerns, saying the regulator is committed to providing relief. He shared that OGRA had already cut Rs. 57 billion from Sui Southern Gas’s request and rejected Rs. 141 billion in overall revenue demands.

Despite this, many fear that if the new demand is approved, it could fuel another wave of inflation and make life even harder for citizens already struggling with rising utility bills.

Update on New Gas Connections

There is also some positive news. The government is considering lifting the ban on new Sui gas connections, which could benefit millions of households and businesses. Nearly 3.5 million applications have been pending since the ban, first imposed in 2009 and reintroduced three years ago.

If approved, more than 100,000 new gas connections could be issued in the fiscal year 2025–26 under IMF-linked reforms. The move is also expected to help manage surplus LNG and reduce pressure on foreign reserves.

Meanwhile, OGRA has raised fixed charges for consumers — 50% higher for protected users and up to 200% for high-use households. However, the per-unit gas rates remain unchanged.

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