Ogra allows 6.9 percent UFG to SNGPL

UFG or Unaccounted For Gas comprises of gas leakages due to aging network, measurement adjustments, law and order situation and gas theft. It is clarified that even developed world regulators allows gas companies UFG at 6 percent where there is zero or negligible theft. OGRA has allowed UFG to gas company at 6.9 percent while SNGPL total UGF is around 10.9 percent. A very small component of that is theft. Our comparable electric utilities have much higher line losses.
SNGPL total UFG is Rs17.7 billion approx per FY 17-18 OGRA approved nos. The regulator allows 6.9 percent (Rs11.3 billion) in the gas price while remaining amount of Rs6.4 billion has to be borne by the company itself out if its own sources and is not passed on to gas consumers. Thus UFG passed on to consumers in gas price is per international standards and best practices.-PR