Petroleum minister launches campaign against gas pilferers

LAHORE: Federal Petroleum Minister Ghulam Sarwar Khan launched anti-gas theft campaign here at the Sui Northern Gas Pipelines Limited (SNGPL) Head Office on Monday.

Earlier, briefing the media, he said that unaccounted for gas (UFG) was about 11 per cent in SNGPL, covering Punjab and Khyber-Pakhtunkhwa (KPK), while 13 per cent UFG was in Sui Southern Gas Pipelines Limited (SSGPL) covering Sindh and Balochistan.

He explained that one per cent UFG means Rs 2 billion loss and in this way both the gas companies have an accumulative loss of Rs 48 billion.

The incumbent government, he added, has decided to minimise the UFG ratio by one per cent i.e. to overcome Rs 2 billion loss per annum, and SNGPL and SSGPL had been tasked in this regard.

He said that main losses due to gas theft in Peshawar region were in gas producing areas including Hangu, Kohat and Karak, which claimed of their first right over gas.

And as per law, he continued, for which the respective gas company would bear cost of 54,000 households, while the rest would be paid by the provincial government.

He said that KPK government had agreed to control gas theft by regulating these areas and to pay over and above cost of gasification.

Same was the situation in Balochistan region of SSGPL and his ministry was deliberating with the respective provincial government and MPAs in an effort to mitigate the UFG losses and bring it to at least seven percent as allowed by OGRA (Oil and Gas Regulatory Authority) each to SNGPL and SSGPL, he maintained.

Federal Minister also expressed dissatisfaction over the performance of both the companies regarding implementation on Gas Theft Act.

He added that now the crackdown against gas theft had been expedited with the coordination of provincial governments concerned.

He made it clear that action would also be initiated against the official/officer of gas companies, who found involved in helping/encouraging the consumers for gas theft.

Responding to reporters’ queries, Ghulam Sarwar Khan said that gas tariff was increased because both the gas companies (SNGPL and SSGPL) were running into an accumulative deficit of Rs 15 billion created by the previous government, which purchased/imported gas at higher prices and sold it on cheaper rates during its five year term, and this factor ultimately jeopardized the financial health of both the gas companies.

Federal Minister clarified that upper slab (143 per cent increase) of gas tariff affected only five per cent of the total gas consumers, while 95 per cent of the consumers fall in lower slabs of 10 to 20 per cent increase.

He asserted that over billing to gas consumers was due to some technical fault in determining the tariff slabs and gas pressure factor.

Prime Minister took immediate notice of the situation and directed the PM Task Force to probe the matter, while a departmental inquiry had also been finalised and its report would be submitted to the prime minister by end of this month.

Ghulam Sarwar Khan assured that whoever held responsible would be taken to task and the affected gas consumers would be compensated accordingly.

The relevant authorities were also revisiting the gas tariff slabs, he said.

To another question, he said that PSO (Pakistan State Oil) Board of Directors (BoD) had been reconstituted, while reconstitution of SNGL and SSGPL BoDs had been finalized and the federal cabinet had yet to give their approval.