Gas Prices Rise 10% from July 1, 2025

Islamabad, June 28, 2025 — The federal government has greenlit a gas pricing revision for FY 2025–26, hiking fixed charges for domestic consumers and boosting average tariffs by 10% for the power sector, bulk consumers, and general industry, following a Friday meeting of the Economic Coordination Committee (ECC) that approved a Petroleum Division summary, effective July 1, 2025. Domestic users face Rs150 hikes for protected consumers and Rs400 for non-protected, targeting asset cost recovery without per-unit price changes.

Tariff hikes hit bulk users hard: general industry jumps from Rs2,150 to Rs2,350 per mmbtu, the power sector from Rs1,050 to Rs1,313 per mmbtu, and bulk consumers from Rs2,900 to Rs3,075 per mmbtu, with public-sector power entities like Pakistan Petroleum Limited (PPL) and Mari Petroleum adjusted. Unchanged since February 2023, this hike aims to net Rs41 billion for Sui Northern Gas Pipelines Limited (SNGPL) to offset deficits, while Sui Southern Gas Company (SSGC) gains a Rs31 billion surplus to tackle its Rs565 billion revenue gap.

The ECC flagged Rs168 billion annual cross-subsidies in domestic pricing, unchanged now, but a targeted subsidy framework via the Benazir Income Support Programme (BISP)—tied to income levels—is slated for June 2026 finalization and 2027 rollout under IMF energy reforms. Revenue recovery shifts to industrial and power sectors, sparing households. The government vows gradual subsidy reform and energy sector sustainability per IMF programmes.

Web context reveals Pakistan’s energy debt crisis (e.g., Rs4 trillion, web ID: 0), while posts found on X show public anger—some decry hikes, others question IMF influence. Critically, the narrative of “financial stability” may mask burden shifts—web data points to consumer strain, and X sentiment suggests distrust in reform outcomes, hinting at social tension.