SNGPL wants gas tariff raised

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LAHORE: The Sui Northern Gas Pipelines Ltd (SNGPL) wants increase in gas tariff by Rs 53.93 per MMBTU from July 1st, 2013 besides increasing benchmark of gas losses from 4.5 percent cent to 7 per cent with a view to cover billions of rupees worth financial impact. A hearing of the petition filed by the SNGPL in this regard was held under the aegis of Oil and Gas Regulatory Authority (OGRA) here on Wednesday. Unaccounted-for-gas (UFG) reflects gas theft and leakage in the transmission and distribution system of SNGPL. The company is sustaining a loss of billions of rupees every year on account of over 10 per cent UFG.

There will be an increase of seven rupees in the bill of domestic consumers if the SNGPL was allowed by the OGRA to increase the price,.

Ogra Chairman Saeed Ahmad Khan, while talking to reporters, said that the authority would make decision on SNGPL’s request which would be beneficial both for the company as well as for consumers. He said that there would be marginal increase in the bill of domestic consumers if the company was allowed to increase the price.

Replying to a question about the recovery from the defaulters and gas thieves, the Ogra chief said that authority issued stay order only after recovery of more than eighty percent of amount from the defaulter.

Saeed said that SNGPL losses had increased due to the expansion in network on political grounds. He said SNGPL should only follow rules while giving new connections. He also said that the recovery process was slow from the defaulters because of the technical problems.


Courtesy: The News

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