LNG consumers to pay millions extra in margins, other costs

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ISLAMABAD:

The government has decided to impose margins and other charges on the import of liquefied natural gas (LNG) in an attempt to collect millions of dollars from the consumers, which will also go into the pockets of business tycoons having major stakes in gas utilities, reported local media sources.

These charges are being levied in order to recover different types of costs for which third-party access rules have been suspended. The previous government of Pakistan Peoples Party (PPP) had framed these rules, which only allowed the recovery of transmission fee for gas utilities.

The new charges include collection of margins and other import-related costs by PSO, terminal charges under the LNG services agreement, cost of services for gas utilities – Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines (SNGPL), recovery of administrative margins and transmission losses for the utilities and LNG freight charges.