Tallal Chaudhry introduces bill for quarterly natural gas pricing
Pakistani households and businesses face potential energy tariff volatility following the introduction of the Oil and Gas Regulatory Authority (Amendment) Bill, 2026, which proposes shifting natural gas pricing from a semi-annual review to a quarterly determination mechanism. Minister of State for Interior Tallal Chaudhry introduced the legislation in the Senate on Friday, amid widespread public criticism over unpredictable fuel price shocks.
Licensees Will Submit Revenue Requirements Every Three Months
The proposed legislation seeks to insert a new Section 8A into the Oil and Gas Regulatory Authority (Ogra) Ordinance, 2002. Under this framework, natural gas licensees will submit their total revenue requirements every three months, restricted strictly to wellhead gas prices and the cost of imported gas, including Re-Gasified Liquefied Natural Gas (RLNG). Ogra will review these filings and advise the federal government. The government then has a 30-day window to notify minimum charges and retail sale prices for each consumer category through the official Gazette. The mechanism aims to align tariffs with fluctuating market conditions, specifically noting variations in the rupee-dollar exchange rate and import costs.
Removal of Public Hearings and Provisions for Deferral
A central point of contention in the proposed bill is the amendment to Section 9 of the ordinance. The text stipulates that the authority shall not hold public hearings for the revision of prescribed prices under the new quarterly section. This change removes formal opportunities for consumers to present objections before tariff adjustments take effect. To manage potential price spikes, the bill also empowers the federal government to defer all or part of a quarterly adjustment, carrying it forward into the upcoming half-yearly determination governed by Section 8. According to the bill’s statement of objects and reasons, these measures intend to curb the accumulation of circular debt in the energy sector and maintain the operational stability of the supply chain.
Senate Debate Over Corporate Relocation
Beyond the pricing mechanism, Friday’s Senate session involved sharp disagreements regarding the proposed relocation of Pakistan Petroleum Limited’s head office from Karachi to Islamabad. PPP Senator Waqar Mehdi objected to the move, stating that the office had operated in Karachi since around 1951 and that transferring it would cause severe disruption for approximately 500 employees from Sindh while costing billions of rupees in transition expenses. Senator Zamir Ghumro questioned the legality of the move, arguing that oil and gas matters fall under the domain of the Council of Common Interests. Responding to the criticism, Chaudhry maintained that PPL operates as a company whose board determined the office move had become necessary, adding that the company’s assets span Balochistan alongside Sindh and that employee interests remain protected.