ISLAMABAD: The Auditor General of Pakistan (AGP) and the Oil and Gas Regulatory Authority (Ogra) will meet next week to ascertain the gas development surcharge (GDS) claims of gas companies.
Two weeks back, Finance Minister Ishaq Dar issued directives to the AGP for audit of gas companies’ GDS claims before approval of the Petroleum Division’s proposed amendments in GDS Ordinance.
However, the audit officials conveyed the Finance Division that Ogra is not providing mechanism or parameter to determine differential claims of gas companies in selling and cost of gas.
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Whereas, the Ogra officials are of the view that the gas companies calculate the sale of gas and prescribed price themselves. On the basis of that working, the authority determines the gas price twice in a year. To resolve the issue, a meeting is scheduled for next week between the authority and the AGP officials.
Amendments were made in the GDS Ordinance and the rules from time to time to cater for the changed circumstances but it could not be done in totality which has led to generation of audit paras by Directorate General of Audit Petroleum and Natural Resources.
These audit paras normally question the liberty of the gas companies for payment of GDS and interest, thereon, in the absence of time limit specified in the Ordinance and Rules.
Copyright Business Recorder, 2023
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