Islamabad - Prime Minister Office has directed Oil and Gas Regulatory Authority (OGRA) to keep the Unaccounted for Gas (UFGs) losses of the Sui gas companies at 4 percent against the current ratio of 11 to 13 %.

The sub-committee of the National Assembly standing Committee on Energy that met with  Shahid Ahmad in chair was informed by chairperson OGRA Uzma Adil, that the regulator has allowed maximum losses of 7.6 percent to both the Sui companies and will not allow increase in the  losses.NAB is already doing an enquiry against OGRA and questioning that how the regulator had allowed the UFG losses of 7.6 percent to the gas utilities companies. She said that they are getting directives from the Prime Minister Office to keep the UFG and theft losses at 4%. The current rations of losses of both the Sui Companies have reached to 11 to 13 %, she added.

Chairperson OGRA has categorically rejected the SNGPL demand for additional Unaccounted for Gas (UFGs) allowance over and above the Ogra’s approved limit saying the regulator has set the maximum limit for the UFG and will not allow the transfer of burden of over and above the permitted UFG to the gas consumers,

She said that OGRA has allowed SNGPL for 120000 new gas connections and they are asking for more connections.

Ogra official said that they will not allow setting up of  offices at SNGPL new service areas as it will increase the expenditures of the company which will burden the end consumers. Official of the SNGPL said that Ogra has allowed increased connections but no funds is provided for the executions.  Ogra is saying that if the losses are above 4.5 percent it will be deducted from the company’s profit.

 Managing Director SNGPL said that they have submitted a plan for reduction in the UFG losses to the government. The plan had also been shared with IMF, he added. The performance of the company is being affected by various factors, the SNGPL official said.The official informed that currently they are providing Rs 155 per mmbtu subsidy to the gas consumers. With deteriorating financial condition it can become hard for the company to complete the gas supply projects.

He said for the provision of gas to Karak, the company has requested OGRA for special funds. For the ongoing fiscal SNGPL has requested Rs 20 billion from Ogra but only Rs 5.3 billion were approved.

Sardar Hassan Nakkai questioned that why their gas supply schemes were stopped.Chairperson Ogra said that funds for the gas schemes is being provided by the Federal government and not by the regulator.