Islamabad, May 6, 2025 – Officials from Sui Southern Gas Company (SSGC) have indicated that a potential increase in gas tariffs may be necessary to guarantee a consistent gas supply and eliminate load-shedding across Pakistan. The statement was made during a recent Senate Standing Committee on Petroleum meeting, where concerns about low gas pressure and frequent outages were thoroughly examined.
Gas Supply Challenges Highlighted
The discussion revealed significant challenges in meeting Pakistan’s gas demands. The Managing Director of Sui Northern Gas Pipelines Limited (SNGPL) explained that only 40% of the nation’s gas needs are currently met through domestic production, with the remaining 60% reliant on imported Liquefied Natural Gas (LNG). This heavy dependence on imports has contributed to the ongoing load-shedding crisis, particularly in urban centers like Lahore.
The SNGPL official assured the committee that efforts are being made to stabilize supply, particularly in areas experiencing severe disruptions. Specific complaints raised by Senator Qasim Raza were promised personalized follow-ups to ensure swift resolution.
Surge in Consumer Complaints
The committee was informed that gas-related grievances have spiked in recent months. During Ramadan, over 20,000 complaints were lodged, primarily concerning low pressure and outages. Over the past year, SNGPL recorded approximately 130,000 complaints related to gas pressure, with nearly 98% of them addressed, according to the company. The SNGPL MD emphasized ongoing improvements to the complaint resolution system to enhance consumer satisfaction.
Petroleum Sector Under Scrutiny
Petroleum Minister Bilal Khan addressed the committee, acknowledging that the petroleum sector has been overshadowed by the government’s focus on electricity over the past year. He noted a gradual decline in local gas consumption, with imported LNG increasingly powering even household kitchens. The minister also highlighted delays in implementing policies for oil refineries, though he expressed optimism about growing foreign investment in Pakistan’s minerals sector.
Reko Diq Project Update
The Director General of Minerals updated on the Reko Diq mining project, a key initiative poised to significantly boost Pakistan’s economy through substantial mineral extraction and investment.The project is slated to commence production in 2028 and is projected to operate for 35 years, generating an estimated $65 billion in revenue. The development is seen as a cornerstone of Pakistan’s efforts to attract international investment in its natural resources.
Path Forward
Senate committee concludes gas supply complaint discussions, considers issue temporarily resolved, but urges ongoing vigilance to ensure stability.As Pakistan grapples with its energy challenges, the proposed tariff hike looms as a potential solution to ensure a stable gas supply, though it may place additional financial strain on consumers already facing economic pressures.
