OGRA decides to end years old controversy, allows maximum Sui Cos' UFG claims

News Image

By MG News | December 26, 2018 at 10:35 PM GMT+05:00

0:00

ISLAMABAD, Dec 26: The Oil and Gas Regulatory Authority (OGRA) Wednesday said it was ending years’ old controversy and unnecessary prolonged litigation with the Sui gas companies, allowing them maximums of their claims against line losses viz-a-viz the UFG benchmark of 2.6 percent.

The Sui Southern Gas Company (SSGC) had claimed a maximum of 2.44% UFG losses and OGRA had already allowed 1.57% in the FY 2012-13 to FY 2016-17.

A press release issued by OGRA here stated that 0.87% was further allowed to the SSGC and now (variable allowance) capped to 2.44%.

The financial impact of this shall not be passed on to the consumers.

About the Sui Northern Gas Pipelines Ltd (SNGPL), OGRA said it had claimed 3.29 % for the same years against which it had been allowed 2.49% and now only 0.11% was being given to it.

However, OGRA limited their claims to a maximum of 2.6% and the financial impact of which would be staggered in the next five financial years, which amounted to an increase of less than 50 paisa’s per MMBTU.

"This decision shall end the constant litigation on this account and lay to rest the continuous friction between the Sui companies and the regulator. The regulator will also be cognizant of the fact that it is also bound by certain laws and cannot take arbitrary decisions in the name of the best interest of the consumers, as had this decision not been taken, the equity of SSGC would have been wiped out and it would become simply a burden on the national exchequer.

It is up to the Sui companies to improve their performances and become sustainable in future as they cannot expect to be bailed out by the Federal Government always," OGRA said.

The Sui gas companies needed to control their UFG (unaccounted for gas) losses, which were simply not possible without internal collusion, it added.

(APP)

Related News

Name Price/Vol %Chg/NChg
KSE100 130,065.82
213.89M
-0.21%
-278.21
ALLSHR 80,941.29
699.41M
-0.10%
-82.69
KSE30 39,761.36
83.57M
-0.37%
-146.90
KMI30 189,484.39
109.23M
-0.03%
-50.61
KMIALLSHR 54,787.25
375.53M
0.01%
3.59
BKTi 34,603.09
20.19M
-0.97%
-337.65
OGTi 28,432.54
13.57M
0.48%
136.48
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 110,065.00 110,250.00
109,200.00
-220.00
-0.20%
BRENT CRUDE 68.70 69.00
68.32
-0.41
-0.59%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
-0.75
-0.76%
ROTTERDAM COAL MONTHLY 109.20 0.00
0.00
0.20
0.18%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 67.03 67.50
66.65
-0.42
-0.62%
SUGAR #11 WORLD 15.72 15.73
15.44
0.14
0.90%

Chart of the Day


Latest News
July 03, 2025 at 02:12 PM GMT+05:00

Ghani Global secures SECP approval for share issuance


July 03, 2025 at 01:26 PM GMT+05:00

Banks raise ATM withdrawal fee to Rs35


July 03, 2025 at 12:57 PM GMT+05:00

SBP mandates biometrics for wallet cash


July 03, 2025 at 12:03 PM GMT+05:00

Saudi Riyal available at PKR 76.4 in open market



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg