Pakistan regulator hikes LNG price by 15% for June

Pakistan's Oil and Gas Regulatory Authority (Ogra) has announced a 15% increase in the price of Regasified Liquefied Natural Gas (RLNG) for June. This rise, affecting sales at the distribution stage by the two Sui gas companies, stems primarily from purchases on the international spot market made on short notice due to supply disruptions. The latest notification places the June RLNG price substantially higher than in previous months, marking a 56% increase from March and a 73% jump from February.

The consequence of this price escalation is a significant rise in fuel costs for power generation. In May, the fuel cost for RLNG-based power generation reached Rs31 per unit, a stark contrast to Rs13.72 per unit in April. This surge directly impacts electricity prices for consumers.

Karachi-based Sui Southern Gas Company Limited (SSGCL) serves consumers across Sindh and Balochistan. The company's distribution-stage system losses currently stand at 12.55%, a slight increase from approximately 10.6% recorded a couple of months prior. The parallel entity, Sui Northern Gas Pipelines Limited (SNGPL), serves consumers in Punjab and Khyber Pakhtunkhwa.