islamabad: the government on sunday notified a substantial hike in gas prices, increasing fixed charges by 50% and revising tariffs for non-residential consumers. the oil and gas regulatory authority (ogra) issued the new tariff notification, affecting both protected and non-protected domestic users.
for protected domestic consumers, fixed charges rose from rs400 to rs600. these include households with an average winter gas usage of up to 0.9 hm3. for non-protected consumers — those consuming above 0.9 hm3 — charges were increased from rs1,000 to rs1,500 for usage up to 1.5 hm3, and rs3,000 for higher usage brackets.
government and semi-government institutions, hospitals, and educational establishments will now be charged rs3,175 per mmbtu. traditional tandoors will pay between rs110 and rs700 per mmbtu depending on consumption.
commercial users face a steep hike, with rates now at rs3,900 per mmbtu. industrial users will pay rs2,300, while captive power producers — industries generating their own electricity — must pay rs3,500 per mmbtu. cng stations are now set at rs3,750 per mmbtu.
among all, cement factories will pay the highest rate of rs4,400 per mmbtu. fertilizer plants are set at rs1,597, while power producers like k-electric will be charged rs1,225 per mmbtu.
ogra’s adjustments follow its determination of the estimated revenue requirement (err) for 2025-26: sngpl needs rs534.5 billion, and ssgcl rs354.2 billion. combined, the sui companies must generate rs888.6 billion in revenue.
officials note that these increases are necessary to align consumer prices with revenue needs, as required by law. under previous rates, projected earnings for both companies stood at rs847.7 billion — falling short of targets.
some ecc members criticized the guaranteed 24% return for sui companies, arguing it discourages efficiency and encourages system losses. the tariff adjustment was also necessary to meet imf conditions of twice-yearly price revisions.
