The government has decided to keep Pakistan gas prices unchanged despite a reduction in the gas tariff approved by the Oil and Gas Regulatory Authority (OGRA). Officials said the decision was taken to maintain the financial stability of the country’s two major gas utilities during the 2026-27 fiscal year. The move means consumers will not receive lower gas bills despite the revised tariff.
According to a senior official of the Petroleum Division, OGRA reduced the average prescribed price for both Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) from Rs1,793 per MMBtu to Rs1,705 per MMBtu. The revised tariff reflects a lower benchmark for the gas companies.
Despite this adjustment, the government has decided not to pass the benefit on to domestic and commercial consumers. Officials said gas prices for all consumer categories will remain unchanged throughout the current fiscal year unless a new policy decision is announced.
Authorities explained that maintaining existing gas prices is intended to strengthen the financial position of SSGC and SNGPL. Both companies have faced financial pressures in recent years due to rising operational costs, circular debt and challenges related to gas supply and distribution.
Sources also said the government has formally informed the International Monetary Fund (IMF) about its decision. The communication is believed to be part of Pakistan’s broader commitments regarding reforms in the energy sector and fiscal management.
Energy experts say the decision reflects the government’s effort to balance consumer interests with the financial sustainability of public-sector gas companies. While the tariff revision reduces the benchmark cost, maintaining retail prices may help improve the companies’ cash flow and operational performance.
The announcement comes as Pakistan continues implementing reforms in its energy sector to address financial challenges and improve efficiency. Consumers, however, are expected to continue paying existing gas rates despite the reduction in the prescribed tariff approved by the regulator.
