In a significant blow to inflation-weary consumers, the Oil and Gas Regulatory Authority (OGRA) has notified a massive increase of up to 22% in the prices of Re-gasified Liquefied Natural Gas (RLNG) for March 2026.

The hike comes on the heels of a sharp rise in petroleum prices, further compounding the energy crisis in the country. According to the official notification, the new rates are driven by increased import costs, higher terminal charges, and a volatile global energy landscape.

Breakdown of the New LNG Prices

The price adjustments vary slightly between the two major gas utilities serving the north and south of the country:

Note: For Sui Northern (SNGPL) consumers, the increase translates to approximately Rs 622 per MMBTU in local currency terms, while Sui Southern (SSGC) consumers will see an impact of roughly Rs 634 per MMBTU.

Why are prices rising?

Market experts and the regulatory authority have cited several critical factors for this “rare” double-digit spike:

1. Global Supply Disruptions: Recent geopolitical tensions in the Middle East, including disruptions near the Strait of Hormuz, have caused a “crisis premium” on energy shipments.
2. Reduced Cargoes: Pakistan received only two LNG cargoes in March compared to the usual eight, following a force majeure declared by suppliers.
3. Terminal & Import Costs: Lower imported volumes have led to higher per-unit terminal charges and increased “Delivered Ex-Ship” (DES) prices.
4. System Losses: Rising “Unaccounted for Gas” (UFG) or system losses—currently at 12.55% for SSGC and 9% for SNGPL—have also added upward pressure on the final consumer price.

Impact on Consumers and Industry

This price hike is expected to ripple through the economy, affecting:

• Power Generation: RLNG accounts for about 10% of Pakistan’s electricity mix; higher gas prices will likely lead to increased fuel price adjustments in monthly electricity bills.
• Industrial Sector: Manufacturing units, especially textiles and fertilizers, face higher production costs, potentially making exports less competitive.
• Inflation: Coming just a week after a Rs 55 per litre increase in petrol prices, the LNG hike is expected to drive up the cost of daily necessities due to increased transport and processing costs.

While the government is pushing for a shift toward indigenous energy sources like solar and wind to reduce reliance on volatile imports, the immediate burden on the public remains high.