Contents
Fixed Gas Charges for Domestic Consumers Increased from July 1, 2025
Starting July 1, 2025, domestic gas consumers in Pakistan will face a significant hike in fixed monthly charges, as approved by the Economic Coordination Committee (ECC) of the Cabinet. This adjustment, part of the revised natural gas pricing structure for the fiscal year 2025–26, aims to address revenue shortfalls for gas companies like Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) while maintaining the per-unit gas prices for households. The decision comes amid efforts to meet financial obligations and recover asset-related costs, as outlined by the Petroleum Division. Below is a detailed breakdown of the changes, their implications, and what consumers can expect.
Overview of the Fixed Gas Charges Hike
The ECC, in its recent meeting, approved a proposal to increase fixed charges for domestic gas consumers to ensure the financial sustainability of the gas supply network. According to reports from Dawn, the fixed charges for both protected and non-protected domestic consumers have been revised upward, while the per-unit gas tariff remains unchanged to protect households from additional financial strain. This move is part of a broader strategy to redistribute costs among consumer categories, with partial burdens shifted to bulk, power sector, and industrial consumers.
Key Changes in Fixed Charges
- Protected Domestic Consumers: The monthly fixed charges have increased by Rs 200, from Rs 400 to Rs 600.
- Non-Protected Domestic Consumers: The monthly fixed charges have seen a steeper hike of Rs 500, rising from Rs 1,000 to Rs 1,500.
- High Consumption Non-Protected Consumers: For those consuming over 1.5 cubic hectometres (hm³) per month, fixed charges have increased from Rs 2,000 to Rs 3,000.
These changes, effective from July 1, 2025, are expected to help address a Rs 41 billion revenue deficit for SNGPL and generate a Rs 31 billion surplus for SSGC, which will be used to offset prior shortfalls, as noted by Business Recorder.
Impact on Domestic Consumers
The hike in fixed charges will directly affect household budgets, particularly for non-protected consumers who face a more substantial increase. While the per-unit gas price remains unchanged, the increased fixed charges will add to the monthly bills, impacting both low and high-income households. The government has justified this adjustment as necessary to maintain the gas supply infrastructure without altering the per-unit tariff, which could have a more significant impact on consumers. Additionally, the additional revenue is expected to be partially offset through disbursements via the Benazir Income Support Programme (BISP), aimed at cushioning the impact on low-income households.
Revised Fixed Charges Table
| Consumer Category | Previous Fixed Charges (Rs) | New Fixed Charges (Rs) | Increase (Rs) |
|---|---|---|---|
| Protected Domestic Consumers | 400 | 600 | 200 |
| Non-Protected Domestic Consumers | 1,000 | 1,500 | 500 |
| Non-Protected (Consumption > 1.5 hm³) | 2,000 | 3,000 | 1,000 |
Source: Dawn
Implications for Other Sectors
While domestic consumers face increased fixed charges, other sectors are also affected by the revised pricing structure:
- Power Sector: Gas tariffs for power plants have increased from Rs 1,050 to Rs 1,313 per mmBtu, leading to an estimated Rs 0.12 per unit increase in the average power tariff.
- Bulk Consumers: The tariff for bulk consumers has risen from Rs 2,900 to Rs 3,075 per mmBtu.
- General Industry (Process): The tariff has been revised from Rs 2,150 to Rs 2,350 per mmBtu.
These adjustments, as reported by Pakistan Today, aim to balance subsidies and meet the revenue requirements of gas companies, which total Rs 888.6 billion for the fiscal year 2025–26.
Consumer Reactions and Economic Context
The increase in fixed gas charges comes at a time when inflation continues to challenge Pakistani households. Consumers have expressed concerns about the additional financial burden, especially for non-protected consumers facing a Rs 500 monthly increase. Social media platforms like X reflect public sentiment, with posts indicating frustration over rising utility costs amidst economic pressures. The government’s commitment to offsetting the burden through BISP disbursements aims to mitigate the impact on vulnerable populations, but questions remain about the effectiveness of this measure.
FAQs
Why have fixed gas charges been increased?
The fixed charges have been increased to recover asset-related costs and address revenue shortfalls for SNGPL and SSGC, ensuring the financial sustainability of the gas supply network.
Will the per-unit gas price also increase?
No, the per-unit gas price for domestic consumers remains unchanged to protect households from additional financial strain.
Who qualifies as a protected consumer?
Protected consumers are typically low-income households with lower gas consumption, as defined by the government’s criteria for social safety programs like BISP.
How will the government support affected consumers?
The additional burden on consumers is expected to be offset through disbursements via the Benazir Income Support Programme (BISP), targeting low-income households.
When will the new charges take effect?
The revised fixed charges will take effect from July 1, 2025, subject to final approval from the federal cabinet.
Conclusion
The increase in fixed gas charges for domestic consumers, effective from July 1, 2025, marks a significant adjustment in Pakistan’s energy pricing strategy. While protected consumers face a Rs 200 increase and non-protected consumers see a Rs 500 hike, the government has maintained per-unit gas prices to lessen the impact on households. These changes, aimed at addressing revenue deficits and ensuring the sustainability of the gas supply network, come with assurances of support through BISP disbursements. However, the rising costs continue to spark concerns among consumers, highlighting the need for transparent communication and effective relief measures to balance economic pressures. For more details on the revised tariffs, consumers can visit the official websites of SNGPL and SSGC.
