ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has announced an upward revision in wellhead gas prices for the second half of 2026, marking a 10% increase for PP2012 fields. This adjustment, effective against the first half of 2026, follows a routine semi-annual price change procedure based on the average oil prices from the preceding six months.

According to JS Global, the price adjustment is driven by a significant 35% rise in Arab light oil prices, which averaged $92.2 per barrel from January to June 2026, compared to $68.4 per barrel in the previous six months. This surge in oil prices is expected to result in an estimated 10-11% increase in gas prices for PP12 companies, aligning with the sliding benefit mechanism under the PP12 policy.

The notification details the price changes for several fields, with further announcements to follow for additional fields. Some wellhead prices are based on oil prices from specific periods, potentially leading to slight variances. Overall, the revision indicates an average increase of 8-10%, which industry analysts believe is favorable for exploration and production earnings.