The two state run gas utilities are seeking steep tariff increases for the next fiscal year. The regulator is also weighing a gradual reduction in the allowance for unaccounted for gas losses charged to consumers. Consequently, gas prices may rise massively next fiscal year for both households and industries. The Oil and Gas Regulatory Authority has called public hearings in Lahore and Karachi on May 12 and 13. These hearings will consider tariff petitions from SNGPL and SSGCL for FY 2026-27.

SNGPL has requested that its prescribed tariff rise to Rs 2,084 per mmBtu from Rs 1,853. This includes the cost of LNG diversion. SSGCL is seeking a much steeper increase according to the regulator’s hearing notice. Therefore, gas prices may rise massively if OGRA approves these requests. The hearings come after an earlier postponement in April. Uncertainty over gas and LNG prices linked to the Middle East crisis complicated the review process. Under the law, the regulator must issue its determination at least 40 days before June 30.

An independent consultant has proposed a modest reduction in the UFG allowance over the next five years. The recommendation would cut the benchmark allowance for both companies to 6.5 percent in FY 2027. However, actual UFG losses stand at 8.8 percent for SNGPL and 13.6 percent for SSGCL. The consultant also flagged the pricing treatment of re gasified LNG. There is currently no separate benchmark for transmission or distribution losses on RLNG. This practice has effectively raised RLNG sale prices by around Rs 1,500 per million British thermal units.

The tariff review will draw close attention from industry and households. Pakistan is trying to rein in energy sector losses without adding further pressure to inflation. Gas prices may rise massively, and consumers must prepare for higher bills.