Election year 2017-18: 517,532 new gas consumers added to SNGPL network: Ogra

ISLAMABAD: As many as 517,532 new gas consumers were added to Punjab in the election year 2017-18 and the last year of the Pakistan Muslim League-Nawaz (PML-N) government, which was 41.4 percent more than the financial year 2018-19, this was revealed in an annual report of the Oil and Gas Regulatory Authority (Ogra) for financial year 2018-19 released Tuesday.

The report reveals that the addition of gas consumers in the Sui Northern Gas Pipeline Limited (SNGPL) had expended to 517,532 consumers, which was reduced by 151,770 to 365,762, during the first year of Pakistan Tehreek-e-Insaf (PTI) government in the financial year 2018-19.

In the KP, the number of addition of gas consumers registered were 87,387 in financial year 2017-18 as compared with 64,649 during financial year 2018-19. During the election year, 761 new towns and villages had been connected in the Punjab, which was reduced to 334 in the financial year 2018-19.

Whereas, 41 villages and towns had been connected to the KP in the financial year 2017-2018 and 32 in the financial year 2018-2019. The report pointed out the result of increase in network, 430,411 number of consumers were added, whereas 366 new towns and villages were connected to gas network in Punjab and the KP during financial year 2018-19.

The number of new consumers of Sui Southern Gas Company (SSGC) in Sindh had been registered 67,431 in election year 2017-18 which was increased to 96,401 during first financial year of provincial government of Pakistan People's Party.

However, 110 new towns and villages were given connections in Sindh, which was a significant increase from 37 new towns and villages given during financial year 2018-19.

Whereas, the gas connections in Balochistan increased to 9,653 in financial year 2018-2019 from 6,522 in 2018-19. The number of new towns and villages also increased from two in 2018-19 to 18 in next financial year. For new gas connection in 2017-18, the transmission and distribution network was enhanced to 283 kms in 2017-18 as compared with 2018-19.

Around 283 kms transmission network was added in Punjab by the SNGPL as compared with financial year 2018-19, when there was no transmission network extended. Around 9,920 kms addition to distribution network of the SNGPL was added in financial year 2017-18 in Punjab, which was reduced to 6,211 kms in financial year 2018-19.

In the KP, 60 kms transmission network was added in election year as compared with 81 km network in financial year 2018-19. Whereas, distribution network was reduced to 1,570 kms in financial year 2018-2019 as compared with 1,773 kms network in 2017-2018.

The report says that the Ogra has been delegated the powers to determine the RLNG price on monthly basis in line with other petroleum products, and the same are notified by the PSO. The PSO and the PLL are designated as LNG buyers by the federal government.

The OGRA computes the RLNG prices in accordance with parameters provided by the federal government. Monthly data on RLNG in the report highlighted a constant decrease in the prices of RLNG from July 18 to June 2019. The price of RLNG in July 2018 recorded $12.8 per mmbtu for the SNGPL system and $13.2 per mmbtu for SNGPL, which reduced to $9.9 per mmbtu in June 2019 for SNGPL and $10.9 per mmbtu for SSGCL.

In oil sector, the reports states that retailers of various oil marketing companies (OMCs) tend to charge prices of petroleum products higher than the officially-notified prices from the consumers.

This happens due to lack of monitoring/vigilance of the OMCs on their retailers. The authority has started conducting surprise inspections at the OMCs Retail Outlets. It has been observed that whenever there is a speculation of price change of petroleum products, the OMCs/retailers tend to hoard/withhold the POL stock, for inventory gain. The OGRA has taken cognizance of this issue and has started to depute its teams for inspections ahead of the notification of the POL prices.

Copyright Business Recorder, 2020