KARACHI: At the Oil and Gas Regulatory Authority (Ogra) public hearing hung on Monday, the Sui Southern Gas Firm (SSGC) petitioned for a rise of Rs153.16 per mmbtu in the recommended rates of gas for 2021-22 to meet the profits shortfall as well as RLNG services.
On the other hand, the CNG market and also market stakeholders called this suggested rise unjustified as well as prompted the gas firm to present audited documents as well as work on radical decrease in unaccounted for gas (UFG) losses.
In its prayer, the SSGC requested Ogra to permit net rise of Rs3.395 billion, or Rs10.65 per mmbtu, in the earnings demand of the aboriginal gas organization (consisting of LPG air mix consumer).
Aptma claims recommended rates not sustainable
On the other hand, in its recommendations, All Pakistan Textile Mills Organization (Aptma-South) stated that prescribed costs were not lasting. It requested Ogra to prohibit much of the changes and advised for out-of-the-box options.
The utility principal acknowledges the concern of unannounced gas loadshedding that has actually made residential customers’ life unpleasant
” Ogra might suggest exercise of GIDC [Gas Framework Advancement Cess] to cause decrease in gas costs. UFG, induction of LNG and also wellhead costs are not sustainable and require significant down alteration. Decrease of indigenous gas is not sustainable. Ogra/SSGC needs to inform the federal government. Based On Ogra Statute 2002, it is needed to reduce economic distortions, send out ideal price signals and also security of consumers. All suggested costs need to be decreased. Export-oriented, zero-rated industries, including its connected power generation plants, require to be fixed at Rs450 per mmbtu,” the body recommended.
Entrepreneur as well as sector leader Zubair Motiwala said there was a requirement for an even playing field and fair practices. “Break this syndicate which has developed all these problems. I believe I can take a seat with you and also prove that there is space for Rs59 decrease in the price. Kindly comprehend our future, the future of our generations and the big populace depends upon the industrialisation in this nation.”
He went to claim that “anarchy was being invited” as a result of this unfair playing field as well as syndicate.
The industry is not prepared to buy RLNG under compulsion, he said, adding that strategies consisting of rejection of link to brand-new units were being utilized.
‘ CNG sector is completed in Sindh’
Abdul Sami Khan, chairman of the CNG Dealers Organization, stated the CNG sector was ended up in Sindh. “Things are so bad that CNG dealerships are struggling. It’s been 20 days as well as the industry is falling down. The reason this sector was propped up to reduced gas imports, we spent billions and also currently no person is there to hear our complaints. A previous federal government advisor had actually recommended the market relocate to RLNG. He stated after transferring to RLNG we will not have any trouble. The CNG market is enduring because we don’t have gas. We just want the gas we produce, as outlined in the Constitution,” he said.
“The SSGC has a terrific responsibility but regrettably we are being overburdened. Why is there gas theft? This needs to be considered to make sure that these thefts are over and also we get access to that gas,” he said.
Talking with reporters after the hearing, SSGC Taking care of Supervisor Imran Maniar recognized the problem of UFG and unannounced gas loadshedding, which has actually made the life of domestic consumers difficult integrated with electrical energy outages.
“The comments offered by Mr Motiwala we need to approve this truth that native gas at this point is 67 per cent, below 100pc. Some six-seven years ago we did not have the demand to import a solitary LNG molecule. We set the cost of our gas ourselves. Even our domestic consumer gets gas at Rs121 per mmbtu. Nevertheless, the fact is that we have begun to import gas. We have two terminals importing gas, we can not choose the price for this gas as its set by worldwide market. Imported gas will certainly be costly as we need to make payments in dollars and also however the customers will be the ones paying,” he stated.
“If we start offering aids to all markets, we will encounter a comparable circumstance like the power field. The round debt in the power industry is Rs2.3 trillion. Is this the direction that we are heading where five to six years from now we are facing similar difficulties?” Mr Maniar asked.