Bill proposing quarterly gas pricing lands in Senate

ISLAMABAD: In what is set to stir a new controversy, a bill proposing quarterly determination of natural gas prices landed in the upper House of Parliament on Friday. The Oil and Gas Regulatory Authority (Ogra) (Amendment) Bill , 2026, was introduced in the House by Minister of State for Interior Tallal Chaudhry at a time when the daily fuel pricing mechanism has drawn widespread criticism. The bill seeks to insert a new Section 8A in the Ogra Ordinance, 2002. Under the proposed mechanism, a licensee for natural gas will submit its total revenue requirement on a quarterly basis — only to the extent of wellhead gas prices and the cost of imported gas, including Re-Gasified Liquefied Natural Gas (RLNG) — for review by the authority.

Ogra will then advise the federal government, which must, within 30 days, advise minimum charges and sale prices for each category of retail consumer for gazette notification. The bill also empowers the federal government to advise Ogra to carry forward the entire or part of a quarterly adjustment to its forthcoming half-yearly determination under Section 8. In a clause likely to trigger debate, the bill amends Section 9 to state: “Provided that public hearing shall not be held by the Authority for revision of prescribed prices under Section 8A. ” The statement of objects and reasons states that the primary objective is to align tariffs with market realities by adjusting for Rupee-Dollar parity in a timely manner, signal accurate pricing, curb accumulation of circular debt in the gas sector and ensure financial and operational stability of the gas supply chain. The bill landed in the Senate at a time when consumers are complaining of unpredictable fuel price shocks. If passed, it shall come into force at once. ‘Will Karachi’s sea be shifted…