What happened
According to Dawn, the Oil and Gas Regulatory Authority (Ogra) announced an increase of up to 15.3 per cent in Regasified Liquefied Natural Gas (RLNG) distribution prices for October. The adjustment, which follows a 20 per cent reduction recorded in September, was largely driven by higher global crude oil prices. The revised tariffs apply to sales by the nation's two major gas utility firms, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).
Key facts
Dawn outlined several key details regarding the updated figures and regional operations:
- SNGPL figures: Serving consumers in Punjab and Khyber Pakhtunkhwa, SNGPL's transmission rate increased by 13.9 per cent to $15.94 per mmBtu, while its distribution rate grew 14 per cent to $17.33 per mmBtu for October. Distribution system losses rose to nearly 9 per cent, compared to 7.47 per cent in October of the previous year.
- SSGCL figures: Supplying Sindh and Balochistan, SSGCL's transmission tariff rose 15.25 per cent to $14.53 per mmBtu, and its distribution price increased 15.27 per cent to $16.396 per mmBtu. System losses at the distribution stage were reported at 12.55 per cent, up from about 10.6 per cent last year.
- Import costs and supply additions: The average delivered ex-ship (DES) price for two Qatari cargoes in October was $10.75 per mmBtu, up from $10.06 in September. Final retail prices exceed the DES price by $5.65 for SNGPL and $6.58 for SSGCL due to public sector supply chain costs, system losses, and 3.77 per cent retainage and margin fees charged by port authorities and state importers Pakistan State Oil and Pakistan LNG Limited.
Why it matters
According to Dawn, the RLNG price surge is anticipated to have a major impact on electricity generation fuel costs in December. In September, RLNG-based power generation cost Rs40 per unit based on an average import rate of $10.06 per mmBtu. The higher October benchmark of $10.75 per mmBtu will consequently escalate power generation expenses.
Source: Dawn - Home · Published October 30, 2026 · Photo by Joachim Schnürle on Unsplash
