Senate Tabled Bill Proposes Quarterly Natural Gas Price Revisions Without Public Hearings

Pakistan’s Senate received the Oil and Gas Regulatory Authority (Amendment) Bill, 2026, on Friday, introducing a quarterly pricing mechanism for wellhead natural gas and imported fuel costs. Tabled by Minister of State for Interior Tallal Chaudhry, the legislation aims to curb circular debt by aligning retail tariffs with Rupee-Dollar exchange rate fluctuations every three months.

Quarterly Pricing Adjustments and Market Realities

• Frequency Shift: The proposed legislation introduces a three-month pricing cycle under a new Section 8A of the Ogra Ordinance, 2002.
• Public Hearings Removed: The bill amends Section 9 to eliminate mandatory public hearings for quarterly tariff revisions, with the government required to advise minimum charges and sale prices within 30 days.
• Debt Mitigation: Official statements indicate the framework targets the reduction of energy sector circular debt through timely cost-recovery adjustments.

Under the Oil and Gas Regulatory Authority (Amendment) Bill, natural gas licensees must submit their total revenue requirements quarterly, isolating wellhead gas prices and imported supplies like Re-Gasified Liquefied Natural Gas. The federal government retains the authority to defer the entirety or a portion of any quarterly adjustment, rolling those figures into subsequent half-yearly determinations.

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The removal of public hearings strips away a primary avenue for retail consumers to formally raise objections or present their concerns before quarterly gas tariff adjustments are made.

Parameter	Current Framework	Proposed Framework
Review Cycle	Semi-Annual	Quarterly
Public Hearings	Mandatory	Exempted for Quarterly Adjustments
Notification Window	Not specified	30 Days

Why the Government Wants Quarterly Gas Pricing

Beyond tariff revisions, the Senate session saw friction over institutional relocations. PPP Senator Waqar Mehdi criticized plans to shift Pakistan Petroleum Limited’s head office from Karachi to Islamabad, arguing that the move disrupts approximately 500 officers and employees from Sindh and bypasses the Council of Common Interests, a point echoed by PPP Senator Zamir Ghumro regarding provincial jurisdiction over oil and gas assets. Raising questions during the session, Senator Mehdi asked, Will Karachi’s sea be shifted next? and remarked, From the federal government’s conduct, it seems tomorrow they will talk of shifting Karachi’s sea to Islamabad as well.

Minister Tallal Chaudhry defended the relocation by citing that PPL’s assets are not only in Sindh but also in Balochistan, asserting that vacating the office had become inevitable. Minister Chaudhry stated, We take everything towards provincialism, regionalism. No employees are being affected. There is no provincialism in shifting this office from Karachi. Senator Zamir Ghumro questioned, How can you shift it without the will of the CCI?

Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.

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