Ogra Hikes RLNG Prices, Gas Utilities Tariffs Skyrocket
The Oil and Gas Regulatory Authority (Ogra) has announced a significant increase in Re-gasified Liquefied Natural Gas (RLNG) prices for July, effective from July 1, 2026. The price hike ranges between USD5.76 and USD6.45 per MMBtu.
The new rates reflect a substantial rise over the previous month, driven by the cost of five spot cargoes procured by the Pakistan LNG Limited (PLL). This increase will impact both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), with transmission tariffs rising by more than 32 percent. For example, SNGPL's transmission tariff increased from USD17.9394/MMBtu in June to USD23.7020/MMBtu in July.
The Ogra also notified an increase in rates of domestic and commercial cylinders of Liquefied Petroleum Gas (LPG) for the month of August, with a new rate of Rs254 per kg fixed. The price of 11.8kg domestic LPG cylinder has increased by Rs152, taking the new price to Rs3,000.93, while the price of 45.4kg commercial LPG cylinder has increased by Rs585 to Rs11,546.
The State Bank of Pakistan (SBP) has been directed to carry out a study to assess the impact of daily price revision of petroleum products on inflation in line with international best practices and establish a mechanism to curb inflationary pressures. The National Price Monitoring Committee (NPMC) expressed concern about overcharging for LPG, signaling the need for effective monitoring and enforcement measures.