The Petroleum Division is working closely with audit firm KPMG to identify which domestic consumers will face increased gas sale prices starting July 1, 2025. KPMG’s recommendations will assist the federal government in revising tariffs as part of the ongoing International Monetary Fund (IMF) program, which mandates gas pricing adjustments to resolve the financial challenges faced by Sui gas companies.
On May 20, 2025, the Oil and Gas Regulatory Authority (Ogra) set new prescribed gas prices for the fiscal year 2025-26. The price for Sui Northern Gas Pipelines Limited (SNGPL) was raised to Rs. 1,895.50 per MMBtu, reflecting increased use of re-gasified LNG, while the rate for Sui Southern Gas Company (SSGC) was reduced by Rs. 103.95 to Rs. 1,658.55 per MMBtu.
SNGPL currently faces a revenue shortfall of Rs. 40 billion, whereas SSGC is operating with a surplus.
At present, a cross-subsidy of Rs. 140 billion is being paid by industrial, commercial, captive power, CNG, bulk, and high-end domestic consumers to subsidize protected and lower-tier domestic users. The upcoming tariff revisions aim to address these imbalances and ensure financial sustainability for the gas sector.