Gas Prices Likely to increase from January 2012- Oil and Gas sector update
Friday, October 21st, 2011 7:08:25 by Ahmed Tariq
Gas Prices Likely to increase from January 2012- Oil and Gas sector update
Islamabad- Oil and Gas Authority of Pakistan (OGRA) reported on Friday that it will be forced to put extra burden on it consumers by increasing the gas tariff by up to Rs 50 per mmbtu from the start of next year. Such actions will have to be taken to cover up for the losses and financial damages caused by the continuous gas theft and gas pipeline losses, a Spokesperson for the OGRA stated.
Sui Northern Gas Private Limited and Southern Sui Gas Company, which are the two leading companies of Pakistan in gas sector, have failed collect the debt and meet the targets set by the Authority. Both organisations have requested the regulatory body to increase the tariffs to overcome shortfalls worth billions of Rupees. The gas prices are expected to increase by January 2012.
Both utilities earlier had got adjustments from the supreme court of Pakistan at seven per cent for the head of UFG (unaccounted for Gas) in a bid to cover their own poor performance and inappropriate policies. After the honourable court made its decisions, OGRA made billions of rupees from the pockets of overburdened consumers by increasing the gas tariffs.
Documents further informed that federal government of Pakistan had allowed both gas provision companies to raise the tariffs by Rs 12.64 per mmbtu for SSGC and Rs 5.46 per mmbtu for SNGPL. Both utilities have spent a large sum of money on advertisements, travelling and legal matters. The utilities also suffered heavy losses due to 2010 and 2011 floods in the country. It was further told by OGRA that the country is facing gas shortfall of about 2 billion BCF per annum.
In a notice sent to OGRA, SNGPL and SSGC have pleaded for an increase in tariff by up to Rs 54 per mmbtu to overcome the financial issues, they are facing. It was revealed that consumers will be charged with an increased tariff from the period between January 2012-June 2012. The requirement of revenue shortfall is estimated to be Rs 30 billion, forty crores and 90 lacs for the above mentioned durations of time.
Short URL: https://www.newspakistan.pk/?p=1117
Posted by Ahmed Tariq
on Oct 21 2011. Filed under Pakistan, Sci-Tech.
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