The Oil and Gas Regulatory Authority (Ogra) notified an approximately 15% [1] increase in the price of Regasified Liquefied Natural Gas (RLNG) for June.
This price adjustment impacts sales at the distribution stage, potentially raising energy costs for industrial and commercial consumers across Pakistan. The hike reflects the volatility of the global energy market during geopolitical instability.
Ogra said the increase was "mainly because of purchases from the international spot market at short notice amid supply disruptions caused by the US-Iran war" [1]. These urgent acquisitions were necessary to maintain energy stability as planned supply chains faced interruptions.
The current price surge follows a period of significant volatility. According to Ogra, prices in May were almost 56% [1] higher than they were in March and 73% [1] higher than previous benchmarks.
Officials in Islamabad said that the reliance on the spot market, where gas is bought for immediate delivery, typically leads to higher costs compared to long-term contracts. The disruption caused by the conflict between the U.S. and Iran forced the regulator to seek immediate alternatives to prevent power shortages.
Ogra said the 15% [1] increase for June is a direct result of these market conditions. The regulator continues to monitor international price trends to determine future adjustments for the distribution stage.
“An around 15pc increase in the price of Regasified Liquefied Natural Gas (RLNG) for sales at the distribution stage”
The price hike underscores Pakistan's vulnerability to geopolitical shocks, specifically the US-Iran conflict. By relying on the international spot market for short-term supply, the country faces higher costs and unpredictable pricing, which can lead to inflationary pressure on domestic industries that depend on RLNG for power and production.
