OGRA Fixes August RLNG Price at Rs7,204 per mmBtu in Record 32pc Hike
OGRA has notified a record 32 per cent jump in RLNG prices for August 2026, fixing the retail rate at Rs7,204 per mmBtu — the steepest single-month increase in the commodity's decade-long history in Pakistan. Five spot-market LNG cargoes replaced cheaper Qatari supplies disrupted by the US-Iran conflict, and RLNG-based electricity generation fuel costs have already reached Rs31 per unit.
Pakistan's oil and gas regulator OGRA (the Oil and Gas Regulatory Authority) on Friday fixed the RLNG (regasified liquefied natural gas) price for August 2026 at Rs7,204 per mmBtu — a record single-month jump of 32 per cent — after Pakistan was forced to buy five spot-market cargoes when Qatari supplies were cut off by disruptions linked to the US military campaign against Iran. This is the largest increase in RLNG prices since the fuel entered Pakistan's energy mix a decade ago, and it is already driving up the cost of gas-fired electricity generation.
What OGRA Has Decided
OGRA notified the following RLNG wholesale rates for August 2026:
- SNGPL (Sui Northern Gas Pipelines Limited): $25.83 per mmBtu
- SSGCL (Sui Southern Gas Company Limited): $25.09 per mmBtu
Both translate to a retail rate of approximately Rs7,204 per mmBtu. In July, SNGPL's rate was $19.52 per mmBtu (Rs5,446) — itself a 15 per cent rise over the previous month. The jump from February 2026's rate of $10.45 per mmBtu (Rs2,916) means August RLNG is now approximately 148 per cent more expensive than it was just six months ago.
OGRA attributed the surge to procurement of five LNG cargoes from the international spot market. No cargo could be secured from Qatar — Pakistan's main long-term LNG supplier — because of disruptions caused by the US-Iran conflict, leaving Pakistan fully exposed to significantly higher spot prices.
Impact on Electricity Bills
RLNG prices feed directly into the fuel cost component of electricity tariffs. The effect is already showing: fuel costs for RLNG-based power generation reached Rs31 per unit (kWh) in May 2026, up from Rs13.72 per unit in April — a near-doubling in one month. That May figure was based on RLNG rates far below today's level. With August costs now set at Rs7,204 per mmBtu, NEPRA (the National Electric Power Regulatory Authority) is expected to reflect even higher fuel cost adjustments (FCAs) in electricity bills for September and October 2026.
SNGPL supplies most of Punjab and Khyber Pakhtunkhwa, while SSGCL covers Sindh and Balochistan. Consumers in DISCO areas drawing on RLNG-based generation — including LESCO (Lahore), FESCO (Faisalabad), MEPCO (Multan), PESCO (Peshawar), HESCO (Hyderabad), and QESCO (Quetta) — will be most directly affected.
LPG Prices Also Rise in August
OGRA simultaneously raised LPG (liquefied petroleum gas) prices by Rs12.89 per kg (5.4 per cent), fixing the regulated rate at Rs254.32 per kg from 1 August 2026, up from Rs241.43 per kg in July. A standard 11.8 kg cylinder now costs approximately Rs3,001 at the regulated price. LPG is the primary cooking and heating fuel for millions of households in rural Punjab, Balochistan, and parts of Khyber Pakhtunkhwa that are not connected to the gas grid.
Rs50 Billion in Savings Diverted to Circular Debt
In a belated disclosure, OGRA revealed that it had reduced the prescribed prices for SNGPL and SSGCL by Rs134 per unit (7.4 per cent) in a determination finalised on 23 June 2026 — a move projected to generate around Rs50 billion in savings. Rather than passing these savings on as lower gas bills, the government directed the funds toward circular debt adjustments.
In an unusual departure from two decades of established practice, OGRA did not publish this price determination on its website. Consumer groups and transparency advocates are likely to press for an explanation of both the diversion and the disclosure lapse.
Frequently Asked
Questions about this story
How much have RLNG prices increased for August 2026?
OGRA has fixed the August 2026 RLNG retail rate at Rs7,204 per mmBtu — a 32 per cent jump from July's Rs5,446 per mmBtu and approximately 148 per cent higher than the February 2026 price of Rs2,916 per mmBtu, marking the largest single-month increase in the fuel's decade-long history in Pakistan.Why did RLNG prices spike so sharply in August 2026?
Pakistan had to procure five LNG cargoes from the costlier international spot market because no shipment could be secured from Qatar — its primary long-term LNG supplier — due to disruptions caused by the US military campaign against Iran. Spot cargoes carry a significant premium over contracted supply.Will higher RLNG prices increase my electricity bill?
Yes, almost certainly. RLNG-based generation fuel costs already rose from Rs13.72 per unit in April to Rs31 per unit in May 2026. With August RLNG now 148 per cent above February levels, NEPRA is expected to pass higher fuel cost adjustments on to consumers in September and October 2026 billing cycles.By how much have LPG prices changed in August 2026?
OGRA has raised the regulated LPG price by Rs12.89 per kg (5.4 per cent) to Rs254.32 per kg effective 1 August 2026, up from Rs241.43 per kg in July. A standard 11.8 kg cylinder now costs approximately Rs3,001 at the regulated rate.What happened to the Rs50 billion in gas utility savings that OGRA identified?
OGRA reduced prescribed prices for SNGPL and SSGCL by Rs134 per unit (7.4 per cent) in a determination finalised on 23 June 2026, generating approximately Rs50 billion in projected savings. Instead of reducing consumer gas bills, the government directed those funds toward circular debt adjustments, and OGRA did not publish the determination on its website — a first in the regulator's two-decade history.
Free Newsletter
Get Pakistan's Energy Week in 3 Minutes
NEPRA decisions, tariff moves, solar updates, and load shedding news — one short email every week. No spam.
One email per week · Unsubscribe anytime · No spam
