Gas Tariff Hike Proposed by Sui Northern and Sui Southern for 2025-26
Pakistan’s Sui Northern and Sui Southern Gas Companies have requested substantial increases in gas tariffs for the fiscal year 2025-26, which will lead to a nationwide rise in gas prices. Sui Northern has proposed an increase of Rs. 735.59 per MMBTU, while Sui Southern is seeking a much larger increase of Rs. 2443 per MMBTU, which includes adjustments for previous financial shortfalls.
The proposed hikes come as the companies aim to address their financial needs, with Sui Northern requiring Rs. 700 billion and Sui Southern seeking Rs. 44 billion. Public hearings on these proposals are scheduled for April in various cities, including Lahore and Peshawar on April 18 and 28, and Karachi and Quetta on April 21 and 23. The Oil and Gas Regulatory Authority (OGRA) is closely reviewing the tariff adjustments.
OGRA has already approved significant increases in gas tariffs. Consumers in Sindh and Balochistan are facing an average hike of 25.78%, while those in Punjab, Khyber Pakhtunkhwa, and Islamabad will see an 8.71% rise. Additionally, the price of LPG has been adjusted, increasing by Rs. 0.54 per kg. This will raise the cost of an 11.8 kg domestic cylinder to Rs. 2,930.71 starting in April 2025.
On a positive note, petrol prices in Pakistan are expected to decrease by Rs. 12 per liter from April 16, following a decline in global crude oil prices, providing some relief to consumers.
The proposed gas price hikes are likely to impact both households and industries, driving up living costs and production expenses. Consumers are urged to stay informed about any upcoming decisions or relief measures.
Furthermore, Sui Northern has announced new gas supply schedules and load-shedding plans post-Ramadan 2025, designed to ensure consistent gas pressure during peak usage hours in Rawalpindi, Islamabad, and surrounding areas.