Surge in gas prices inevitable: OGRA

Chairperson Oil and Gas Regulatory Authority (OGRA), Uzma Adil Khan said on Monday that surge in gas prices is inevitable. Talking to media after the public hearing of OGRA in Lahore Uzma Adil said that prices of gas would likely be increase by 75-80 percent. The new rates will be implemented from July 1.
She also said the purchase price of gas has increased which affected the buying and selling difference. Gas rates had not been increased for two years. She said increase in price of dollar is also a factor behind the increase.
Uzma Adil categorically said that there is no chance of bankruptcy of any gas company and assured that government will not let that happen.
While responding to a question regarding reasons behind over billing in winter chairperson said that the fourth gas slab and pressure factor were the reasons behind over billing. The consumers which were overcharged will be refunded.
Prime Minister's committee will determine the responsible persons behind over billing, she concluded.
The representatives of the Sui Northern Gas Pipelines Limited (SNGPL) and other companies also presented various reasons for demand of hike in gas prices in the hearing.
Speaking at a public hearing by OGRA in Lahore, the central leader of APCNGA Ghiyas Paracha said that the recovery of all the losses from CNG and other sector is unjustified and unacceptable.
He said that gas worth Rs48 billion is being stolen out of which 93 percent is stolen in the district of Karak in which gas officials were involved.
Pointing out the weakness in the gas billing and measurement system he said that gas consumers were over charged.
Paracha said that SNGPL has demanded Rs723 per mmbtu increase in gas tariff and Rs111 per mmbtu increase in LNG tariff if the demand of the company will be accepted then the burden of this price hike will be on the shoulder of the consumers.
He further said that the volume of gas continues to increase but the charges of gas distributors are not decreasing but continue to increase which is against the phenomena.
The leader of the CNG sector said that payment for post terminal expanses like re-gasification, transportation, and UFG should be made in the rupee and not in the dollar. He expressed his hope that if his suggestions were accepted it will reduce the price of gas instead of an increase.