The International Monetary Fund (IMF) has recommended to the government to reduce high Unaccounted for Gas (UfG), regularly review gas tariff notification to ensure cost recovery and strengthen the regulatory framework. This was stated in the 12th and final review under the IMF $6.64 billion Extended Fund Facility. The review acknowledges the government's efforts for improving gas supply/demand situation but stressed the need for reducing high gas system losses.
According to the review "gas shortages were reduced through supply and demand measures. Supply was increased through better incentives to domestic producers and Liquefied Natural Gas (LNG) imports, tariffs were rationalised to bring them closer to cost recovery and strengthen demand management, the regulatory framework was improved, and legislation to tackle gas theft was strengthened....(but) efforts are needed to address the still high gas system losses." The government committed to finalise the delayed notification of the FY 2016/17 gas tariff by October 2016 and resume regular gas notification moving forward. The Fund appreciated the government's strategy to further reduce gas shortages by stepping up LNG imports while continuing to fully pass through the price of imported LNG to consumers. The final review stressed that continuing efforts to reduce still high distribution losses, including by strengthening network infrastructure and tackling gas theft, is needed to improve the sector performance and welcomed the government's plan to move ahead with restructuring and unbundling the gas sector.