The government has officially notified a significant 50% increase in fixed gas charges for domestic consumers, as per a recent announcement from the Oil and Gas Regulatory Authority (Ogra). Under the new structure, fixed charges for domestic consumers in the Protected category will rise from Rs400 to Rs600.

Meanwhile, those in the non-protected category will see their charges increase from Rs1,000 to Rs1,500. For non-protected consumers exceeding a consumption threshold of 1.5 cubic hectometres (hm³), the fixed charge will escalate to Rs3,000, up from Rs2,000.

This decision follows the approval by the federal cabinet’s Economic Coordination Committee (ECC) on Friday, which will take effect from July 1, 2025.

Despite the hike in fixed charges, the price of gas itself will remain unchanged for domestic consumers. The sale prices for both Protected and Non-protected categories will stay the same, and gas prices for tandoors, commercial units, compressed natural gas, and ice factories will also remain unaffected. However, gas prices for general industries, power stations, and independent power producers will see an increase.

Last month, Ogra determined a 6.6% increase (Rs117 per unit) in prescribed natural gas prices to meet a revenue requirement of approximately Rs890 billion for the two gas companies during the fiscal year 2025-26. The average revenue requirement for Karachi-based Sui Southern Gas Company Ltd (SSGCL) was calculated at Rs354 billion, with the prescribed price set at Rs1,659 per million British thermal unit (mmBtu), reflecting a reduction of about Rs104 per unit from the previous year’s rate of Rs1,762 per mmBtu.