Pakistan’s Oil and Gas Regulatory Authority (OGRA) has announced a fresh increase in gas prices for power plants, industrial users, and a large section of household consumers, effective July 1, according to a report by ARY News.
The revision, issued through an official notification, is part of the government’s broader strategy to align energy tariffs with actual supply costs and regulatory frameworks. While slab-based rates for domestic gas consumption remain unchanged, fixed monthly charges for households will see a notable rise.
Protected residential consumers will now pay PKR 600 per month, up from PKR 400, while unprotected consumers will see their monthly charges rise from PKR 1,000 to PKR 1,500. Households with high gas usage — exceeding 1.5 cubic meters — will face a steeper jump, with fixed charges increasing from PKR 2,000 to PKR 2,400.
As reported by ARY News, the Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, approved the revised tariff structure in its latest session. In addition to household adjustments, gas tariffs for power plants and industrial units will be raised by 10 percent.
The price hike aligns with Pakistan’s commitments under its ongoing agreement with the International Monetary Fund (IMF), which has pushed for subsidy reforms, especially in the energy sector. The IMF has emphasized the need for targeted support measures that protect low-income consumers while reducing broad-based subsidies.
The move is also aimed at curbing the country’s mounting circular debt in the energy sector and ensuring a reliable supply of gas to high-priority industries and power generators.
In a related adjustment, the price of Liquefied Petroleum Gas (LPG) was increased earlier on May 31. OGRA’s notification raised the LPG rate by 54 paisas per kilogram, setting the new price at PKR 248.37/kg from April 1. The price of an 11.8 kg domestic LPG cylinder also rose by PKR 6.40, now costing PKR 2,930.71.
This latest gas price adjustment is expected to further strain household budgets, particularly for middle-income groups, while increasing input costs for industrial sectors and power producers. However, from a policy standpoint, the changes are designed to stabilize the energy sector’s financial health and reduce reliance on unsustainable subsidies. Analysts suggest the shift may pave the way for a more targeted social safety net and improve prospects for consistent energy supply, though short-term inflationary pressures could follow.
