SSGC, SNGPL irate with OGRA over slashing consumer tariff

ISLAMABAD: Gas distributors for Pakistan have opposed on Friday Oil and Gas Regulatory Authority (OGRA) decision to slash down Liquefied Natural Gas (LNG) prices after scrapping the benchmark of factoring in losses and leakages of gas in systems to the consumer bills, ARY News reported.

According to the gas distributors, Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) the decision was taken without taking them in confidence and it will hike the deficit already faced by them in gas distribution.

The decision is unfair and contradictory to law, SSGC spokesperson noted.

It may be noted that OGRA had earlier allowed gas distributors to charge 11 to -17 per cent of unaccounted-for-gas (UFG) from LNG consumers in the tariff. However, day before yesterday, the regulatory slashed the rate to about 6 pc after Economic Coordination Committee realized how much UFG could be collected from domestic consumers and advised OGRA to accordingly regulate it.

SSGC and SNGPL have taken up the issue and have said they are deliberating over the new notification.