SNGPL requests Ogra to increase prices to overcome Rs 18.785 billion shortfall

Sui Northern Gas Pipelines Limited (SNGPL) has filed a petition before Oil and Gas Regulatory Authority (Ogra) to increase the prices of gas by Rs 31.95 per MMBTU to cover the shortfall of Rs 18.785 billion in the current FY 2012-13. SNGPL officers presented this petition before the Chairman Ogra, Saeed Ahmad Khan and Deputy Chairman Ogra Sabir Hussain during the public hearing about fixation of natural gas prices held in Lahore on Thursday.
Chairman Ogra, Saeed Ahmad Khan while talking to media said that the SNGPL has requested Ogra to increase the prices to cover their shortfall in their revenue, increase the ratio of UFG besides they need resources for developing infrastructure. However Saeed said that Ogra will take a decision about the new prices of gas in light of the consumers interest. He also termed the announcement of CNG association of closure of CNG pumps as illegal. He said CNG prices at this time are according to the notification issued by Ogra on October 25 adding that Ogra has called the CNG association on Friday for consultation as the Supreme Court had ordered on November 19 that all the stake holders should decide about the new CNG price formula after mutual consultation and then inform the court.
While answering a question about the low gas pressure faced by people in different localities, Saeed said that Ogra has asked SNGPL to solve this problem faced by the people. He also said that provision of gas to the domestic sector is the first priority of the government while second priority is the provision of gas to the power sector. While replying to another query about the recovery of amounts from the gas defaulters he said that SNGPL should immediately start recovering the outstanding dues to bridge its shortfall of revenue.
Legal counsel and member Board of Directors SNGPL, Mahmood Mirza while presenting the case of SNGPL before the Ogra said that the company urgently needs funds otherwise the company will be in financial crisis. He requested the Ogra to consider their application and allow them to increase the prices. He also said that power sector and urea plants are making huge profits from their gas adding that company who is supplying gas should also be allowed to increase their prices.
Representing the consumers Chairman Consumers Awareness And Welfare Association, Engineer S.T Hussain rejected the increase in prices by SNGPL and said that instead of increasing the prices SNGPL should focus on recovering amount from defaulters and curtail line losses.
Hussain suggested that third party should be given the task to determine the gas theft as well as latest technology should be used by the company in order to control UFG. Deputy Managing Director SNGPL Amir Tufail said that company should be allowed to increase the UFG ratio and also demanded that they should be allowed 400,000 domestic connections because more than one million applications of domestic connections are pending.