The Oil and Gas Regulatory Authority (OGRA) has officially sanctioned a significant surge in gas prices for the current fiscal year, aligning with the conditions imposed by the International Monetary Fund (IMF). This decision is set to impact consumers and industries nationwide, marking another step in Pakistan’s economic alignment with international financial stipulations.

Breakdown of the Price Hike

• Sui Northern Gas Pipelines Limited (SNGPL): An 8.71% increase, bringing the average price to Rs1,778.35 per MMBTU.
• Sui Southern Gas Company Limited (SSGCL): A substantial 25.78% hike, raising the average price to Rs1,762.51 per MMBTU.

Implementation Timeline

OGRA has forwarded its decision to the federal government for final approval. The revised prices are expected to take effect from January 1, 2025, contingent upon federal directives.

IMF’s Role in the Decision

The price hike is a direct result of IMF’s requirements under its loan program. The increase reflects the government’s commitment to economic reforms and fiscal discipline, albeit with potential challenges for the general public and businesses alike.

This development is crucial for industries relying heavily on gas consumption, and it underscores the broader economic adjustments being implemented to secure Pakistan’s financial stability.