OGRA announces 50% gas price hike effective from July 1

Express Tribune

12 hours ago

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The Oil and Gas Regulatory Authority (OGRA) has officially issued a notification for a significant increase in gas prices for domestic and other consumer categories, with the new rates coming into effect from July 1, 2025.
The move brings further financial pressure on inflation-hit citizens, as domestic gas tariffs have been revised upward by up to 50% in certain categories. According to the official notification, domestic gas prices have been revised substantially. For household consumers, the new rates will range from Rs200 to Rs4,200 per MMBTU.
The tariff structure separates consumers into protected and non-protected categories. Protected domestic consumers—generally low-income households—will pay between Rs200 and Rs350 per MMBTU, while non-protected consumers will face considerably higher rates ranging from Rs500 to Rs4,200 per MMBTU.
In addition to the unit-based charges, OGRA has introduced fixed monthly charges for domestic users.
Read More: Fixed gas charges jacked up by 50%
Protected consumers will be required to pay Rs600 per month, whereas non-protected consumers will be billed Rs1,500 monthly. Furthermore, non-protected households consuming more than 1.5 MMBTU per month will be subject to an increased fixed charge of Rs3,000 per month.
The revised tariff also applies to various institutional and commercial sectors. Government institutions, semi-government bodies, hospitals, and educational institutions will now be charged Rs3,175 per MMBTU. For traditional tandoors (bread ovens), gas rates have been set between Rs110 and Rs700 per MMBTU, depending on usage levels.
Commercial consumers will now pay Rs3,900 per MMBTU, while general industrial users will be charged Rs2,300 per MMBTU. Captive power producers—industries generating their own electricity—will pay Rs3,500 per MMBTU, and CNG stations will be billed at Rs3,750 per MMBTU.
Cement factories will face the highest tariff among industrial users, with rates set at Rs4,400 per MMBTU. Fertilizer plants will be charged Rs1,597 per MMBTU. For K-Electric and other electricity generation companies, the new tariff has been fixed at Rs1,225 per MMBTU.
Also Read: Govt raises gas prices by 10% for commercial users
The notification comes a day after the Economic Coordination Committee (ECC) of the Cabinet approved a revised gas pricing framework, including an average 10 per cent increase in tariffs for bulk, industrial and power sector consumers.
While the ECC maintained existing gas prices for household users, it permitted an upward revision in fixed monthly charges for domestic consumers, aimed at recovering infrastructure and asset costs of gas utilities.
Officials said the tariff adjustments are expected to shore up revenue for gas distribution companies and reduce the financial burden of energy subsidies, a central condition in Pakistan's ongoing economic stabilisation programme backed by the International Monetary Fund.