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Aftab Maken
ISLAMABAD: The Petroleum Division has stepped up preparations to manage winter gas demand, with Federal Minister for Petroleum Ali Pervaiz Malik chairing a high-level meeting to assess the load-management strategies of SNGPL and SSGC. The minister said the Prime Minister had directed the division to ensure households receive stable gas supply during the peak winter period, stressing that “every possible step” must be taken to prioritise public comfort, said an official statement of the Ministry issued here on Monday.
Managing directors of Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company (SSGC) briefed the meeting on nationwide supply conditions, the domestic-RLNG balance and system pressures expected in the coming weeks. The rollout of new RLNG connections was also reviewed as part of efforts to strengthen distribution networks and improve availability during high-demand hours.
According to the SNGPL chief, domestic users are currently receiving gas from 5 a.m. to 10 p.m., in addition to dedicated supply windows during meal times. He said supply conditions this year were “significantly better” than last winter due to improved operational planning and timely LNG procurement. The minister said the government had issued all necessary operational instructions to the two utilities to ensure smooth winter distribution.
Meanwhile, the Oil and Gas Regulatory Authority (OGRA) has reduced the average prescribed prices for both gas utilities for FY2025-26 following its Review of Estimated Revenue Requirement (RERR). In a decision dated 24 November, OGRA set the new prescribed price for SNGPL at Rs1,804.08 per MMBTU, a 3% cut, while SSGCL’s prescribed price was reduced by 8% to Rs1,549.41 per MMBTU, the authority in a separate statement issued here.
The regulator said the downward revision resulted from a detailed scrutiny of the companies’ revenue demands, adjustments in cost assumptions and the inclusion of deferred Pakistan LNG Limited cargo impacts for the benefit of consumers. OGRA also incorporated circular-debt-related adjustments mandated by the Federal Cabinet’s 1 July 2024 decision, allocating Rs13.565 billion for SNGPL and Rs47.315 billion for SSGCL against previous shortfalls.
OGRA reiterated that final category-wise sale prices—covering domestic, commercial, industrial and power sector consumers—must be advised by the federal government. The authority has formally sought guidance, and any approved revisions will be notified once received. Existing gas tariffs will remain unchanged in the interim.
The review comes amid chronic challenges in Pakistan’s gas sector, including falling indigenous supplies, rising reliance on LNG and a persistent buildup of circular debt. Analysts say OGRA’s price determination is central to stabilising sector finances as the government aims to align tariffs with cost-recovery requirements under broader energy reforms.
With prescribed prices now finalized, the next step lies with the federal government, which must weigh fiscal realities against inflationary pressures and the need to shield vulnerable consumers during the winter season.
