Islamabad: The federal government has decided not to reduce consumer gas prices for the fiscal year 2026–27, despite a reduction in the average prescribed gas tariff determined by the Oil and Gas Regulatory Authority (OGRA).

According to details, a senior official of the Petroleum Division said that OGRA has lowered the average prescribed price for Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) from Rs1,793 per MMBTU to Rs1,705 per MMBTU.

However, despite the reduction in the prescribed tariff for the gas utilities, the government has decided to maintain existing gas prices for consumers, meaning there will be no reduction in gas tariffs for domestic, commercial, or other consumer categories during the 2026–27 fiscal year.

Officials said the primary objective of keeping gas prices unchanged is to strengthen the financial position of the country’s two state-owned gas distribution companies, SSGC and SNGPL.

According to government sources, maintaining the current consumer tariff will help improve the financial stability of the utilities, which have faced significant fiscal challenges, including revenue shortfalls and circular debt pressures in recent years.

Sources further revealed that the government has formally informed the International Monetary Fund (IMF) about its decision as part of its ongoing commitments under Pakistan’s economic reform and fiscal management program.

The decision means that although OGRA’s prescribed tariff for the gas companies has been reduced, consumers are not expected to receive lower gas bills, as the government has opted to keep retail gas prices unchanged for the coming fiscal year.

The move reflects the government’s strategy of prioritizing the financial sustainability of the gas sector while continuing coordination with international financial institutions on energy-sector reforms.