OGRA Raises Wellhead Gas Prices For Second Half Of 2026

The Oil and Gas Regulatory Authority (OGRA) has announced higher wellhead gas prices for several gas fields for the second half of 2026, with the latest revisions pointing to an average increase of around 8–10%.

The revised rates will remain applicable from July through December 2026 and have been calculated using the pricing benchmarks applied during the first half of the year.

Wellhead gas prices are reviewed twice a year based on the average crude oil price recorded over the preceding six months. For the July-December 2026 period, the calculation is therefore based on average international oil prices recorded between January and June 2026.

During the first half of 2026, Arab Light crude averaged $92.2 per barrel, representing a 35% increase compared with the $68.4 per barrel average recorded between July and December 2025.

According to a Topline Securities report, the rise in crude oil prices is expected to push wellhead gas prices for fields operating under Petroleum Policy 2012 up by around 10–11%. The increase is relatively lower than the rise in crude prices because of the sliding-scale pricing formula specified under the policy.

OGRA has so far issued revised price notifications for only a limited number of fields, while notifications for the remaining fields are expected to be issued subsequently.

The brokerage noted that the pricing formula for certain fields is based on oil-price averages covering December-May 2026 and June-November 2025, which could lead to minor differences in the revised prices among individual fields.

Topline Securities said the expected price increases had already been incorporated into its financial forecasts and maintained that the revisions would remain positive for the earnings outlook of oil and gas exploration and production companies.