The Sui Northern Gas Pipelines (SNGPL) has sought an increase in gas price by Rs 37.25 per MMBTU for each category of consumers, on account of cost of gas, central excise duty and transmission and distribution T and D) cost, Business Recorder has learnt.
The Oil and Gas Regulatory Authority (Ogra) has re-heard the review petition submitted by SNGPL on October 7, 2010 which stated that as per existing prescribed prices, there is a shortfall in revenue requirements of Rs 23.598 billion. Sources said that SNGPL had requested Ogra that prescribed prices for financial year 2010-11 should be raised by Rs 37.25 per mmbtu for each category to meet the revenue shortfall. SNGPL has sought an increase based on cost of gas by Rs 21.69 per mmbtu, CED Rs 5.52 per mmbtu and T&D Rs 10.05 per mmbtu.
SNGPL in review petition said that a hearing for Review 2010-11 under section 13 of Ogra Ordinance 2002 and Rule 16 of the Natural Gas Tariff rules, 2002, was held on August 4, 2010 in the office of Oil & Gas Regulatory Authority. The hearing was disrupted due to the staging of protest by CNG Association. The attention of the Authority as well as the management of SNGPL was diverted towards addressing and resolving the issues raised by the CNG Association. SNGPL vide letter No FTP-TAR-10-11(P)-010 dated August 25, 2010 requested the Authority to provide another opportunity to present its point of view on major issues including UFG Benchmark, Human Resource (HR) Benchmark and late payment surcharge. The Ogra has considered the matter and decided to provide an opportunity for re hearing on October 7, 2010.
Central Chairman of All Pakistan CNG Association, Ghyas Paracha, said that the Association had opposed any increase in gas price to cover gas theft. He said that Ogra had raised unaccounted for gas (UFG) from 5 to 7 percent for Sui Southern Gas Company Limited (SSGC) which will be recovered from consumers. "After Ogra decision about (SSGC), SNGPL has also sought an increase in benchmark of UFG which will result in hike in gas price for consumers," he added.