The government has decided not to reduce gas prices during the financial year 2026-27, although a reduction in the average fixed price has been approved at the regulatory level. According to government sources, in the current situation, priority is being given to the financial stability of the energy sector instead of providing immediate relief in the bills of gas consumers.
According to a senior official of the Petroleum Division, the Oil and Gas Regulatory Authority (OGRA) has reduced the average fixed price for Sui Southern Gas Company and Sui Northern Gas Pipelines Limited from Rs 1,793 per MMBTU to Rs 1,705 per MMBTU. However, this change will not be applicable to the tariffs charged from consumers.
Officials say that the current gas rates for all domestic, commercial and other consumers will remain unchanged, so no reduction in future bills is expected. According to him, there is a difference between the regulatory price and the tariff charged from the consumers, which is why the public is not being given immediate relief despite the reduction in the average fixed price.
According to official sources, the government is of the opinion that both the state-owned gas companies are facing financial difficulties, while the pressure of circular debt also persists in the energy sector. In such a situation, reducing gas prices is likely to further affect the financial position of the companies.
Sources said that the government wants to maintain the current tariff to maintain financial stability in the gas sector and avoid an increase in circular debt. Under the same strategy, the IMF has also been formally informed about this decision.