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Tariff Overview

What Is the Sui Gas Tariff? — Pakistan's Progressive Pricing System

Natural gas is the lifeblood of the Pakistani household. From cooking rotis on a gas stove in Lahore to heating water in a Peshawar winter, millions of families across the country depend on Sui gas supplied by two major utilities: Sui Northern Gas Pipelines Limited (SNGPL), which serves Punjab and Khyber Pakhtunkhwa, and Sui Southern Gas Company (SSGC), which distributes gas across Sindh and Balochistan. Both companies operate under a common domestic tariff framework approved by the Oil and Gas Regulatory Authority (OGRA).

The term “Sui Gas tariff” refers to the schedule of rates that determines how much money a residential consumer pays per cubic metre (m³) of gas consumed. Unlike a flat-rate utility, Pakistan's gas tariff employs a tiered slab structure — the more you consume, the higher rate you pay on the additional units consumed above each threshold. This progressive design serves two policy goals simultaneously: it keeps gas affordable for low-income households while recovering infrastructure costs from heavier consumers and cross-subsidising the poorest users.

The current tariff framework recognises two broad consumer categories: Protected consumers and Non-Protected consumers. Protected status is a government welfare designation intended to shield the most economically vulnerable households from high energy costs. Protected consumers receive substantially lower per-unit rates across every slab, as well as a lower fixed monthly charge. Non-protected consumers — generally those with higher incomes or larger houses — pay market-closer rates.

The tariff is not set arbitrarily. Under the OGRA Ordinance 2002, OGRA is mandated to determine gas tariffs in a transparent, consultative manner. Utility companies submit annual revenue requirement petitions; OGRA holds public hearings, reviews costs, and issues a determination that sets the slab rates and fixed charges effective from the beginning of each financial year (July 1). These rates are then gazetted in official notifications published in the Pakistan Gazette and are binding on both SNGPL and SSGC.

The current rates published on this page are effective for FY 2025–26 (FY 2025–26 (indicative)). OGRA revises these figures annually and sometimes mid-year via supplementary notifications. Consumers are encouraged to verify the latest gazette notification on the OGRA website or contact their respective utility company before making financial decisions based on these rates.

Understanding the tariff structure is essential for every gas consumer in Pakistan. Whether you are a homeowner in Rawalpindi trying to manage monthly utility bills, a housing society secretary in Karachi looking to negotiate collective meters, or a policy researcher studying energy affordability, knowing how the slabs work, what fixed charges apply, and how GST compounds your bill will help you make informed decisions, budget accurately, and potentially save money through conservation.

Current Rates FY 2025-26

SNGPL & SSGC Current Domestic Slab Rates for FY 2025-26

Both SNGPL and SSGC apply an identical domestic consumer tariff schedule as determined by OGRA for FY 2025–26. The rates below are expressed in Pakistani Rupees (PKR) per cubic metre (m³) of natural gas consumed. It is important to note that in official bills, SNGPL and SSGC actually measure consumption in MMBTU (Million British Thermal Units) and convert cubic metre readings using your meter's Gas Calorific Value (GCV). The m³ figures presented here are blended approximations for ease of understanding — your final bill may vary slightly due to GCV adjustments and meter reading cycles.

The tariff schedule is segmented so that the first units of consumption are charged at the lowest rate. Each slab's rate applies only to the consumption within that band — this is a marginal rate system, not a block rate system. A household consuming 120 m³ in the protected category does not pay Rs 42/m³ on all 120 m³; rather, the first 50 m³ are billed at Rs 11, the next 40 m³ at Rs 22, and the remaining 30 m³ at Rs 42. This distinction is critical and is explained in detail in the calculation section below.

The rates shown here reflect the OGRA determination effective from July 1, 2025. Consumers in Lahore, Faisalabad, Multan, Rawalpindi, Islamabad, Gujranwala, and all other SNGPL service areas pay the same rates as consumers in Karachi, Hyderabad, Sukkur, Quetta, and all other SSGC service areas for domestic consumption. Industrial, commercial, and compressed natural gas (CNG) consumers have separate tariff schedules not covered here.

Bill Calculation Guide

How the Sui Gas Slab System Calculates Your Monthly Bill

The most common misconception about Pakistan's gas slab system is that your entire consumption is charged at the rate of the highest slab you reach. This is incorrect. Pakistan uses a marginal slab system, identical in principle to income tax brackets — each tier's rate applies only to the units consumed within that tier. Understanding this distinction can prevent confusion and help consumers correctly verify their bills.

The calculation process has four steps: (1) split total consumption across the applicable slabs, (2) calculate the energy charge for each slab and sum them, (3) add the applicable fixed monthly charge, and (4) apply GST at 18% on the total of the energy charge and fixed charge. The resulting figure is your estimated monthly gas bill before any arrears, adjustments, or surcharges that SNGPL or SSGC may apply separately.

Let us walk through two detailed worked examples — one for a protected consumer and one for a non-protected consumer — to illustrate exactly how the calculation works in practice.

Non-Protected Category

Non-Protected Consumer Tariff — Higher Rates and How to Transition

The non-protected domestic tariff applies to households that do not meet the criteria for the protected (low-income) designation. This category includes middle- and upper-income families, larger homes, and households whose consumption patterns place them outside the welfare-targeting parameters used by OGRA. In large metropolitan areas such as Karachi, Lahore, Islamabad, and Rawalpindi, a substantial proportion of domestic gas consumers fall under the non-protected category.

The non-protected slab schedule for FY 2025–26 contains six tiers. Consumption of 0–50 m³ is billed at Rs 30/m³, the 51–100 m³ band at Rs 44/m³, the 101–200 m³ band at Rs 80/m³, the 201–300 m³ band at Rs 112/m³, the 301–400 m³ band at Rs 132/m³, and any consumption exceeding 400 m³ at Rs 156/m³. The significant jump in rates at the 101–200 m³ slab — from Rs 44 to Rs 80 per m³ — is by design: it discourages wasteful consumption during peak winter months and signals the boundary between essential and comfort use.

Fixed charges for non-protected consumers are tiered by consumption: households consuming up to 150 m³ per month pay a fixed charge of Rs 1,500, while those exceeding 150 m³ pay Rs 3,000. This means a consumer hovering just above the 150 m³ threshold is effectively penalised with an additional Rs 1,500 in fixed charges — a strong incentive to implement conservation measures to stay below this break-even point.

If you are currently a non-protected consumer but believe you qualify for protected status — for example, you are a low-income household or live in a modest residence — you can apply for reclassification at your nearest SNGPL or SSGC customer service centre or regional office. The process typically requires submitting your Consumer Number, CNIC, a recent gas bill, and documentation supporting your income level. SNGPL and SSGC may conduct a field verification visit before granting protected status.

Conversely, if your consumption has declined substantially — perhaps due to installation of solar water heating, improved insulation, or reduced household size — and you remain in the non-protected category, you may also benefit from strategic load management to avoid the higher upper slabs. The section on gas conservation later in this page provides actionable tips to reduce consumption and keep your bill manageable under the non-protected tariff.

Regulatory Framework

OGRA — The Regulator That Sets Gas Tariffs in Pakistan

The Oil and Gas Regulatory Authority (OGRA) was established through the OGRA Ordinance 2002 with the principal mandate of fostering a competitive environment in the downstream petroleum and natural gas sectors in Pakistan. Headquartered in Islamabad, OGRA operates as an independent quasi-judicial body under the Ministry of Energy (Petroleum Division) and its decisions carry the force of law.

OGRA's tariff-setting process for domestic gas follows a structured annual cycle. Each year, SNGPL and SSGC file their Annual Revenue Requirement (ARR) petitions with OGRA. These petitions detail the companies' operating costs, capital expenditure, depreciation, return on assets, and projected gas volumes. OGRA scrutinises these submissions, invites public comments, and holds formal hearings where consumer advocacy groups, industry associations, and government ministries can present evidence and arguments. This consultative process is designed to balance the utilities' financial sustainability with the consumers' affordability concerns.

After the hearing process, OGRA issues a Determination Order which sets the allowed revenue for each utility and translates this into the slab rates and fixed charges that appear on your gas bill. The Determination is then published in the official Pakistan Gazette, giving it legal effect from the notified date — typically July 1 of the new financial year. Both SNGPL and SSGC are legally bound to implement these tariffs without modification.

OGRA also handles consumer complaints. If you believe your gas bill contains errors, if you have been wrongly categorised as non-protected, or if you have a dispute with SNGPL or SSGC regarding connections, meters, or billing, you have the right to file a formal complaint with OGRA after exhausting the utility company's internal complaint resolution process. OGRA's Consumer Complaint Cell is reachable through its Islamabad headquarters and through regional offices in Lahore, Karachi, Peshawar, and Quetta.

In addition to tariff-setting, OGRA licenses new gas distribution and transmission companies, approves tariffs for liquefied petroleum gas (LPG) distributors, and monitors safety and service quality standards across the sector. The Authority publishes quarterly and annual reports on gas sector performance, which are publicly available on the OGRA website (ogra.org.pk) and serve as an important resource for researchers, journalists, and policy advocates tracking energy affordability in Pakistan.

Tariff History

Sui Gas Tariff History — Rate Trends and Impact on Pakistani Households

The history of Pakistan's gas tariffs is intimately linked to the country's macroeconomic trajectory and its relationship with international financial institutions. For much of the 1990s and early 2000s, gas tariffs were set at politically palatable levels that did not fully recover the cost of gas procurement, transportation, and distribution — resulting in chronic circular debt accumulation in the energy sector. By the mid-2010s, this circular debt had become a serious macroeconomic constraint, and international creditors including the International Monetary Fund (IMF) and World Bank began requiring Pakistan to implement cost-recovery pricing reforms as conditions of financial assistance.

In the period between FY 2015–16 and FY 2020–21, domestic gas tariffs increased substantially — particularly for non-protected consumers. The first 50 m³ entry rate for non-protected consumers, for example, rose from approximately Rs 6–8/m³ in the mid-2010s to Rs 30/m³ by FY 2025–26. Protected consumer rates also rose, but at a more moderate pace reflecting the government's commitment to shielding the most vulnerable. Fixed charges approximately doubled or tripled over the same period.

The impact on Pakistani households has been significant. For families in Lahore and Karachi who rely heavily on gas for cooking, water heating, and space heating, gas bills that were Rs 500–800 per month in 2012 have risen to Rs 3,000–8,000 per month or more by 2025, depending on consumption. This increase has contributed to a shift toward alternative fuels — LPG cylinders, electric induction cooktops, and solar water heaters — particularly in urban middle-class households. The government has periodically announced relief packages, targeted subsidies, and consumption smoothing schemes to mitigate the impact of these increases.

Looking forward, Pakistan's gas tariff trajectory will depend on several factors: the pace of indigenous gas field depletion, LNG import costs, the efficiency of SNGPL and SSGC operations, and the political economy of energy subsidies. The transition toward regasified LNG (RLNG) from the Qatar and other international supply contracts has introduced a dollar-linked cost component that makes PKR-denominated tariffs inherently more volatile when the rupee depreciates.