Pakistan RLNG Prices Soar to All-Time High with Record 32% Increase

The Oil and Gas Regulatory Authority (Ogra) has increased regasified liquefied natural gas (RLNG) prices by a record 32% for August. The regulator set the RLNG price at $25.83 per mmBtu for Sui Northern Gas Pipelines Limited (SNGPL) and $25.09 per mmBtu for Sui Southern Gas Company Limited (SSGCL). This translates into a retail price of about Rs. 7,204 per mmBtu.

The increase is the largest RLNG price hike in the commodity's decade-long history. It follows another steep hike in July, where Ogra fixed RLNG prices at $19.52 per mmBtu for SNGPL and $18.63 per mmBtu for SSGCL, reflecting a 15% increase.

The sharp rise will raise fuel costs for power generation. RLNG-based electricity generation has become more expensive, with fuel costs reaching Rs. 31 per unit in May, up from Rs13.72 per unit in April.