Gas Bills Set to Rise As Govt Hires Audit Firm to Help Determine New Rates

The Petroleum Division is working with audit firm KPMG to decide which domestic consumers should face a hike in gas sale prices from July 1, 2025. KPMG’s recommendations will guide the federal government in determining revised tariffs under the ongoing International Monetary Fund (IMF) program, which requires gas pricing to fully eliminate the money problems being faced by Sui gas companies. On May 20, 2025, the Oil and Gas Regulatory Authority (Ogra) determined new prescribed gas prices for FY2025-26. It increased the price for Sui Northern Gas Pipelines Limited (SNGPL) to Rs. 1,895.50 per MMBtu due to rising use of re-gasified LNG, while it reduced the rate for Sui Southern Gas Company (SSGC) by Rs. 103.95 to Rs. 1,658.55 per MMBtu. SNGPL currently faces a revenue shortfall of Rs. 40 billion, while SSGC is running a surplus. Currently, a cross-subsidy of Rs. 140 billion is being paid by industrial, commercial, captive power, CNG, bulk, and high-end domestic consumers to cover the costs of protected and lower-tier domestic users.