LAHORE – Oil and Gas Regulatory Authority (OGRA) Chairman Tauqir Sadiq chaired a public hearing organized by OGRA on a petition by Sui Northern Gas Pipelines Limited (SNGPL) on Wednesday and said that OGRA was determined to protect the rights of all stakeholders in accordance with the law and in the best public interest. The petition was filed to determine SNGPL’s estimated revenue requirements/prescribed prices for the year fiscal year (FY) 2011-12. The hearing was attended by representatives of various associations, press and stakeholders including consumers, general public, SNGPL management and other interveners. The SNGPL managing director and his team made a detailed presentation and explained the reasons for their estimated revenue requirements/prescribed prices. They also responded to a number of questions raised by the participants and interveners.
SNGPL had filed its petition on December 3, 2010 to determine its estimated revenue requirements for the FY 2011-12 and requested an increase of Rs 28.03 / million British thermal unit (MMBTU) in its average prescribed price with effect from July 1, 2011 due to an increase in the projected cost of the gas in FY 2011-12. The petitioner subsequently amended the petition on March 1, 2011 and sought an increase of Rs 47.98 /MMBTU in its average prescribed price with effect from July 1 2011.
The participants opposed the petition saying that any increase in the gas prices should have adverse effects on gas consumers who were already striving to survive due to ongoing inflation.
They said that the cross-subsidy mechanism should be abolished and the value addition sectors should be preferred for the supply of gas. The participants demanded that the Punjab government develop the Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas LNG sectors on a war footing to bridge the increasing demand-supply gas so that the gas load-shedding could be dealt with. They also criticized the gas theft culture prevailing in the country in connivance with the SNGPL employees and said that all the consumers and industrial associations were willing to work with SNGPL to eradicate the prevailing theft. It was also stressed that the petitioner must endeavour to reduce its number of employees in view of the declining gas supplies.
OGRA to protect stakeholders’ rights
