Ministry of Petroleum and Natural Resources urged the parliamentary committee that unaccounted for gas (UFG) is above 10 percent, which will be reduced by 1 percent each year. Secretary Petroleum Arshad Mirza informed the Public Accounts Committee (PAC)'s sub-committee that the government has proposed measures to reduce the UFG rate of around 10 percent to 7.5 percent as permitted by Oil and Gas Regulatory Authority (OGRA).
The committee meeting was chaired by Syed Naveed Qamar which examined the Ministry of Petroleum and Natural Resources audit reports for year 2002-03. He further disclosed that the government has drawn up a 'Natural Gas efficient Plan' aimed at controlling the UFG.
OGRA - the oil and gas industry regulator - has allowed 4.5 percent UFG to SNGPL for financial year 2014-15 that it can recover from the consumers to make up for the loss caused by gas theft and leakage. SSGC, on the other hand, has won a stay order from the court.
The committee was informed that UFG losses were 8.36 percent in 2000-01, 8.25 percent in 2001-02 and 8.05 percent in 2002-03. The same were over and above the standard rate of 6 percent. Thus, gas valuing Rs 8,303 million has been wasted during those three years. The difference reasons causing UFG and steps taken by the company on ongoing basis is shared with audit representatives each year. For financial year 2005-06, the UFG worked out at 6.60 percent and efforts are underway to bring it down further.
Secretary petroleum said that UFG contributes heavily towards revenue losses. The management has taken this threat as a major challenge and has developed a comprehensive plan to bring down UFG losses. A special committee of the Board of Directors has also been constituted to review UFG figures and proposed remedial measures for its reduction. The committee meets every month and monitors prescribed targets and other activities deployed for UFG control.