Ogra requested to drop another gas bomb on masses

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ISLAMABAD: Innocent masses should get ready for a ‘gas bomb’ as both state owned gas utilities have pleaded Oil and Gas Regulatory Authority (Ogra) to approve a massive hike in gas prices for next financial year 2013-14. Though Ogra during last one month had already approved a towering 9 per cent increase in gas prices over the requests of both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) yet it seems that both gas companies are still not happy as SNGPL has sought Rs46/mmbtu while SSGCL Rs43.80/mmbtu gigantic raise in gas prices. These gas utilities have submitted their petitions for upcoming financial year, available copy of petition divulged to TheNation on Friday.

Interestingly, Ogra has already determined 4.5 percent as a ratio of Unaccounted for Gas (UfG) of SNGPL in the light of Lahore High Court’s order while the gas company has now asked the regulatory authority to approve sky high 7 per cent collection from its consumers on account of stolen gas.

Sui Northern Gas Pipelines Limited (SNGPL) in its petition has pleaded to the regulator to approve a collection of Rs 10 billion from the consumers on account of immense 7 per cent stolen gas (UfG) during next financial year. Total income of the gas utility during upcoming financial year will stand at Rs256 billion, 76 crore and 90 lakhs while it will sale out gas worth Rs 234 billion to its consumers and its expenditure including gas price will be at Rs 269 billion and 81 crore. However, if Ogra approves additional collection worth Rs10 billion from the over burdened consumers even then gas utility on account of additional stolen gas will face a heavy loss of Rs4 billion, 68 crore and 40 lakhs and it will earn a profit worth Rs15 billion and 25 crore in accordance to a formula while the company on account of operating cost will require Rs25 billion during next financial year (FY) 2013-14.

The gas utility (SNGPL) in its plea to the OGRA has said that as the company in a bid to earn its expenditure and profit will have to face a shortfall worth Rs28billion, 30 crore and 40 lakhs so the authority (OGRA) should approve a hike of Rs46/mmbtu in gas price which in result will make the company able to achieve its targets.

Similarly, Sui Southern Gas Company Limited (SSGCL) in its petition has requested to approve a hefty collection of Rs18billion from its consumers on account of UfG/stolen gas. Total income of the gas utility during upcoming financial year will stand at Rs181 billion, 29 crore and 40 lakhs while it will sale out gas worth Rs151 billion to its consumers and its expenditure including gas price will be at Rs176 billion and 12 crore. However, if OGRA approve Rs8 billion collection from the consumers even then gas utility on account of additional stolen gas will face a heavy loss of Rs2 billion, 38 crore and 90 lakhs and in accordance to a formula it (SSGCL) will earn a profit worth Rs12 billion and 66 crore during next financial year (FY) 2013-14.

The gas utility (SSGCL) in its plea to the OGRA has also said that as the company in a bid to earn its expenditure and profit will have to face a shortfall worth Rs10 billion, 14 crore and 80 lakhs so the OGRA should approve a hike of Rs43.80/mmbtu in gas price which in result will make the company able to achieve its targets.

It merits mentioning here that Oil and Gas Regulatory (OGRA), expectedly within next month, would start hearing on the said petitions where both state owned gas companies has sought gigantic hike in gas prices.

 

Courtesy: The Nation


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