APCNGA Opposes SNGPL's Move To Increase Gas Tariff

Sumaira FH Published June 25, 2020 | 01:30 AM

The All Pakistan CNG Association (APCNGA) on Wednesday opposed the Sui Northern Gas Pipelines Limited's (SNGPL) move to increase the natural gas tariff for the fiscal year 2020-21, during a hearing held by Oil and Gas Regulatory Authority here

ISLAMABAD, (UrduPoint / Pakistan Point News - 24th Jun, 2020 ) :The All Pakistan CNG Association (APCNGA) on Wednesday opposed the Sui Northern Gas Pipelines Limited's (SNGPL) move to increase the natural gas tariff for the fiscal year 2020-21, during a hearing held by Oil and Gas Regulatory Authority here.

Speaking on the occasion, APCNGA Central Chairman Ghiyas Abdullah Paracha said existing gas price was also unjustified as the energy prices in international market had declined significantly, a news release said.

In June 2019, he said Oil and Gas Regulatory Authority (OGRA) had determined the price of gas at Rs637 per Million British Thermal Unit (MMBTU) but the tariff was increased to Rs1283 for the CNG sector without following the laid down procedure.

He said the price of local gas was linked with crude and high sulfur furnace oil rates, which had come down by 35 to 50 percent, therefore, the gas price could be reduced by 40 percent.

Paracha said the prices of LPG, flare gas, petrol, diesel and furnace oil, had witnessed a substantial decrease, so the price of natural gas must be brought down.

On March 10, he said the Petroleum Division had directed the gas companies, SNGPL and SSGC, to bring down the Unaccounted For Gas (UFG) ratio from 6.3 percent to 4 percent, cut profit from 20 percent to 15 percent, reduce depreciation by one percent and slash transmission and distribution expenses but the directives were not followed.

The SNGPL was represented by its Managing Director Amir Tufail in the hearing.