RLNG Tariff Revised: OGRA Announces Price Increase for September 2025
RLNG Tariff Revised: OGRA Announces Price Increase for September 2025. RLNG tariff revised again: The Oil and Gas Regulatory Authority (OGRA) has announced another price hike in LNG (Liquefied Natural Gas) for September 2025. This is the second consecutive month of an increase, putting pressure on both domestic and industrial consumers. But what exactly has changed, and how will it affect you? Let’s break it down.
OGRA’s Latest LNG Tariff Revision
In a fresh notification, OGRA confirmed a 2.63% increase in RLNG prices for September 2025. The tariff revision impacts both major gas distribution companies:
| Gas Network | Previous Rate (Aug 2025) | New Rate (Sept 2025) | Increase |
|---|---|---|---|
| Sui Northern Gas Pipelines Limited (SNGPL) | $11.73 per MMBTU | $12.01 per MMBTU | +$0.28 |
| Sui Southern Gas Company (SSGC) | $10.73 per MMBTU | $11.01 per MMBTU | +$0.28 |
This adjustment reflects the global energy market trend, where LNG prices are rising due to higher import and shipping costs.
Comparison with August 2025 Tariff
The September increase follows a 1.46% price hike in August 2025, where LNG became costlier by $0.15 per MMBTU.
- SNGPL (August 2025): $11.73 → Now $12.01
- SSGC (August 2025): $10.73 → Now $11.01
Clearly, a two-month upward trend has emerged, raising concerns for energy-intensive industries and household consumers alike.
Why LNG Prices Are Rising?
Several global and domestic factors are driving these price hikes:
- Rising international LNG prices due to demand in Asian and European markets.
- Higher import & shipping costs with freight charges increasing globally.
- Exchange rate fluctuations impacting dollar-denominated energy imports.
- Supply chain disruptions in global energy logistics.
- Seasonal demand rise as winter approaches.
OGRA considers these factors while reviewing RLNG tariffs on a monthly basis.
Impact of RLNG Price Hike on Pakistan
1. Industrial Sector
Industries such as textile, fertilizer, steel, and cement highly reliant on natural gas will face increased production costs. This could:
- Reduce export competitiveness.
- Raise local product prices.
- Slow down manufacturing output.
2. Commercial Sector
Restaurants, hotels, and businesses using RLNG for cooking and heating may see higher operational expenses, which could be passed on to consumers.
3. Domestic Consumers
Although residential gas is subsidized, the indirect impact of higher RLNG tariffs may appear in:
- Increased gas bills.
- Higher electricity costs (where LNG-based power plants operate).
- General inflation in goods & services.
RLNG Tariff vs. Domestic Gas Prices
To understand the situation better, let’s compare:
| Category | LNG Tariff (Sept 2025) | Domestic Gas Price (Avg) |
|---|---|---|
| RLNG (SNGPL) | $12.01 / MMBTU | Subsidized for households |
| RLNG (SSGC) | $11.01 / MMBTU | Subsidized for households |
This shows that industries and commercial setups bear the brunt of RLNG hikes, while households feel indirect inflationary effects.
Government’s Position on RLNG Price Increases
The government faces a balancing act:
- On one side, it must pass on import cost increases to consumers.
- On the other, it tries to shield households through subsidies.
However, with fiscal challenges and IMF agreements, Pakistan’s ability to subsidize LNG tariffs is limited.
Possible Future Trends in LNG Pricing
Energy experts predict:
- Short-term: Continued fluctuations due to global oil & gas demand.
- Medium-term: Higher LNG import reliance may force Pakistan to renegotiate contracts.
- Long-term: Investment in domestic renewable energy could reduce dependency on imported LNG.
Key Takeaways from RLNG Tariff Revision
- September 2025 marks the second consecutive LNG price hike.
- SNGPL price: $12.01 per MMBTU (↑ $0.28).
- SSGC price: $11.01 per MMBTU (↑ $0.28).
- Driven by global market shifts and import costs.
- Expected to impact industries, households, and inflation.
FAQs About RLNG Tariff Revision
1. What is the new RLNG price for September 2025?
OGRA has set RLNG prices at $12.01 per MMBTU for SNGPL and $11.01 per MMBTU for SSGC.
2. Why did OGRA increase LNG prices?
The increase is due to international LNG market hikes, shipping costs, and exchange rate pressures.
3. Will this affect household gas bills?
Directly, no—since residential gas is subsidized. Indirectly, yes—because industries and power producers will pass on higher costs to consumers.
4. How often does OGRA revise RLNG tariffs?
OGRA revises RLNG tariffs monthly, based on import costs and global market trends.
5. Can LNG prices decrease in future?
Yes, if global demand softens or shipping costs decline, prices may stabilize or reduce.
Conclusion
The RLNG tariff revised by OGRA for September 2025 signals another challenge for Pakistan’s energy consumers. With two back-to-back hikes, industries, businesses, and households are bracing for higher costs.
