ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Friday notified up to five per cent reduction in the price of regasified liquefied natural gas (RLNG) at the distribution stage for the current month, mainly due to lower international oil prices.
This is the second consecutive monthly reduction, following around a 6pc decline in December, cumulatively bringing down RLNG prices by more than 11pc over two months. Before this drop, prices had increased by 4.4pc during October and November.
Karachi-based Sui Southern Gas Company Limited (SSGCL), which serves consumers in Sindh and Balochistan, reported distribution-stage system losses of 12.55pc, up from 10.6pc a couple of months earlier. Meanwhile, Lahore-based Sui Northern Gas Pipelines Limited (SNGPL), supplying gas to Punjab and Khyber Pakhtunkhwa, reported system losses of nearly 9pc at the distribution stage, compared to 7.47pc in October.
According to the notification, the RLNG sale price for SNGPL at the transmission stage declined by 4.62pc to $10.41 per million British thermal unit (mmBtu) for January 2026, from $10.92 per mmBtu in December 2025 and $11.24 in September.
As a result, the sale price at the distribution stage for SNGPL was reduced by 4.68pc to $11.27 per mmBtu for January, compared to $11.83 in December and $12.24 in November.
On the other hand, the RLNG sale price for SSGCL at the transmission stage decreased by 5.25pc to $8.98 per mmBtu for January, from $9.47 in December, $10.065 in November and $9.86 in September.
The distribution-stage sale price for SSGCL was also reduced by 5.26pc to $10.21 per mmBtu for the current month, compared to $10.77 in December, $11.45 in November and $11.01 in September.
Ogra said the reduction in RLNG prices was due to a decrease in the delivered ex-ship (DES) price. Unaccounted-for gas (UFG) for both companies at the distribution stage had increased two months ago.
Ironically, the RLNG distribution prices of $10.21 per mmBtu for SSGCL and $11.27 for SNGPL are almost $3.3 and $4.25 per mmBtu higher than the average DES price, respectively.
This is mainly because both LNG importers, Pakistan State Oil (PSO) and Pakistan LNG Ltd (PLL), along with port authorities, charge profit margins on account of retainage at the rate of 3.77pc of the DES price, on top of losses of 8.97pc for SNGPL and 12.55pc for SSGCL.
