ISLAMABAD, Pakistan (Aug 20): Prime Minister Shehbaz Sharif has ordered an investigation into a massive gas billing fiasco that has hit thousands of industrial and CNG consumers with retroactive charges stretching back nearly a decade, Dawn reported.
The controversy centers on Sui Northern Gas Pipelines Limited (SNGPL), which recently issued revised bills based on long-delayed price notifications from the Oil and Gas Regulatory Authority (Ogra). Businesses say they have been blindsided by charges for dues allegedly accumulated between 2015 and 2022.
Former federal secretary Shahid Khan will lead the inquiry as industrial associations and CNG operators stage protests against the government.
According to Dawn, the disputed bills total nearly PKR 60 billion. The power sector owes PKR 40 billion, industries PKR 14.4 billion, CNG operators PKR 3.8 billion, and the fertiliser sector PKR 2.4 billion. The amount includes general sales tax and late payment surcharges.
At the heart of the debacle are RLNG (Regasified Liquefied Natural Gas) prices that were only “actualised” in December 2024—seven years after the billing period ended. Thousands of companies, including about 2,950 industrial units and 1,200 CNG consumers, now face demands for payments they argue are both unfair and impossible to recover since their products were sold or exported years ago.
The original price notifications had been quietly removed from Ogra’s website, before being reissued in March 2025, raising further suspicions of regulatory mismanagement.
The billing scandal has also exposed a wider PKR 76 billion subsidy shortfall, highlighting how the government has long struggled to balance RLNG’s market cost with subsidised tariffs extended to “priority” sectors.
Meanwhile, regulators and distributors are trading blame. SNGPL insists it acted under clause 3 of the Gas Sales Agreement (GSA) and simply followed instructions, while Ogra maintains the recoveries are legally valid.
The outcome of the probe could determine whether Pakistan’s industrial base absorbs billions in unexpected costs or if the government will be forced to revisit the legality of retroactive billing.