ISLAMABAD – The government is preparing to approve new gas connections, charging applicants at the current imported liquefied natural gas (LNG) rate of approximately Rs 3,900 per million British thermal units (mmBtu). This proposed fee represents a steep jump—nearly four times higher—compared to the previous connection fees. The Petroleum Division has forwarded the proposal to the federal cabinet, seeking permission to lift the long-standing ban on new connections.
Under the proposal, an initial batch of 120,000 connections would be issued in the first year, with priority given to those who paid early or received demand notices before the moratorium began. Applicants in this priority group—estimated at around 250,000—must sign an affidavit agreeing not to pursue legal action over their prior claims. The connection charge itself is set to rise to between Rs 40,000 and Rs 50,000. From then on, consumers will be billed at the RLNG rate, which stands at about Rs 3,200 per mmBtu before taxes.
This move is aimed at utilising surplus RLNG and reducing pressure on domestic gas fields. At present, over 3.5 million applications for new connections are pending across the country. The regulations currently force Sui Northern Gas to ration supply, with domestic users receiving gas for only 6–9 hours a day, notably during meal times. A recent 50 percent hike in fixed monthly charges is already in effect and serves as a supplementary incentive to enhance revenue.
While a potential boon to the gas companies’ revenue models, resuming new connections raises concerns about inefficiencies and revenue recoveries, especially given seasonal shortages and infrastructure limitations. The government sees this as an opportunity to address system imbalances, yet must tread carefully to balance demand, supply integrity, and fiscal responsibility.
This story has been reported by PakTribune. All rights reserved.