Government Decides Against Reducing Gas Prices Despite OGRA Tariff Cut

ISLAMABAD: The government has decided not to reduce gas prices for consumers during the fiscal year 2026-27 despite a reduction in the average prescribed prices for gas utilities by the Oil and Gas Regulatory Authority (OGRA).

According to reports, a senior official of the Petroleum Division said that OGRA has reduced the average prescribed price for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) from Rs1,793 per MMBTU to Rs1,705 per MMBTU.

However, despite the downward revision in tariffs for the gas companies, the government has opted to maintain existing gas prices for domestic and other consumers.

Officials said the decision was taken to ensure the financial sustainability and stability of both gas utilities, which continue to face operational and financial challenges.

Sources further revealed that the government has formally informed the International Monetary Fund (IMF) about its decision to keep consumer gas prices unchanged during the current fiscal year.

The move means consumers are unlikely to receive any immediate relief in gas bills, despite the reduction in the prescribed tariff determined by the regulator.

Further details regarding the implementation of the pricing policy are expected to be issued by the relevant authorities.