SSGC, SNGPL oppose OGRA's decision to cut consumer tariff

ISLAMABAD: Gas distributors on Friday opposed the Oil and Gas Regulatory Authority’s (OGRA) decision to slash liquefied natural gas (LNG) prices for consumers.

According to the gas distributors, Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL), the decision was taken without taking them in confidence, and that it will increase the deficit already faced by them in gas distribution.

“The decision is unfair and contradictory to law,” SSGC spokesperson noted.

It may be noted that OGRA had earlier allowed gas distributors to charge 11 to 17 per cent of unaccounted-for-gas (UFG) from LNG consumers in the tariff. However, on Wednesday last, the regulatory authority slashed the rate to about 6pc after the Economic Coordination Committee realized how much UFG could be collected from domestic consumers and advised OGRA to accordingly regulate it.