Oil Marketing Companies (OMCs) spent Rs90 billion on the establishment of 11 new and additional oil storage facilities which added an estimated 56,000 metric ton capacity for petrol and 41,000 metric ton for diesel in the country during the financial year 2017-18, says a report of Oil and Gas Regulatory Authority (Ogra).
The establishment of 9 new OMCs would bring an investment of Rs4.5 billion in three years. Fifteen companies have shown their interest to set up OMCs and their cases are under consideration of the authority which will bring an investment of at least Rs7.5 billion in three years after grant of license.
The Ogra conducted a UFG study through a consultant M/s KPMG to fix the UFG benchmarks for the gas utility companies in the country. All the stakeholders were consulted and their comments were given due consideration while finalizing the study. In addition, consultative sessions were held in federal and all provincial capitals. The study has been finalized and has been forwarded to gas utilities for implementation.
During the current financial year, the Ogra is analyzing the gas sector reforms proposals received from stakeholders. The government in collaboration with international consultants started gas sector reforms in the mid of current financial year. The prime agenda is unbundling of gas utilities. The Ogra has been providing technical assistance and support to the gas sector reforms team in accomplishing the assigned tasks which include formulation of new licenses for gas distribution companies (Discos) and transmission companies (Transcos), amendment in third party access (TPA) rules, establishment of network codes and new tariff structure. The Ogra has conducted consultative sessions on proposed TPA rules and network code. Comments received from various stakeholders are being analyzed. After proposed amendments, the TPA rules will be forwarded to government for legal vetting and notification in the official gazette.
The Ogra decided 3,893 complaints out of 4,929 complaints (including carry forwarded for previous year) received from all over the country. During the period gas utilities -SNGPL and SSGCL - provided 496 gas connections and a relief of Rs1.341 billion to consumers.
The Ogra received complaints like: delay in provision of gas connection, excessive and estimated billing due to sticky meter, malfunctioning of electronic volume corrector (EVC), alleged tampering/theft charges, enhancement of delivery pressure, low pressure of gas, late delivery of gas bills, waive of later payment surcharge (LPS) and demand of additional security for natural gas etc.
During the year, the Ogra has so far issued 35 licenses for operational marketing of storage and filling plants and 36 licenses for construction of LPG storage and filling plants. The Ogra has also issued 6 licenses for construction of LPG auto refueling stations and seven licenses for storage and refueling of LPG during the same period. Two licenses for construction of LPG air-mix facilities were issued by the Ogra which shall result in improving supply and distribution of LPG. An approximate investment of Rs3.4 billion has been made in the LPG supply infrastructure whereas total investment in the sector till date is estimated at Rs29.58 billion.
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