Action to curb UfG: SSGC posts sharp losses despite meter change initiative

ISLAMABAD: Despite replacing gas meters for 80 percent of its customers across Sindh and Balochistan to curb Unaccounted For Gas (UfG), the Sui Southern Gas Company (SSGC) saw its UfG losses rise sharply from 13.82 percent to 17.84 percent between FY 2013-14 and FY 2021-22.

On Thursday, the Auditor General of Pakistan (AGP) shared with the Public Accounts Committee (PAC) an analysis of gas meter replacement cost and impact on UFG for the period from the fiscal years 2013-14 to 2021-22 showed that despite the incurrence of heavy expenditure, the UFG was not reduced.

The audit official further informed the committee that during these years, meters of 80 percent of consumers (2.563 million out of 3.267 million) were replaced for Rs 19.5 billion.

SSGC officials, however, stated the company’s UFG had significantly reduced from fiscal year 2018-19 (77 bcf) to 2022-23 (45 bcf), however, in terms of percentage reduction, UFG could not be commensurate with the Oil and Gas Regulatory Authority (OGRA) benchmark.

The Managing Director of the SSGC, Muhammad Amin Rajput, maintained that the meter replacements were not solely intended to reduce UFG losses, but also to enhance billing accuracy and improve overall service operations —though these assertions remain unverified.

MD SSGC further stated that the company’s UFG has significantly reduced from fiscal year 2018-19 (72 BCF) to 2023 (31.7 BCF). However, UFG, excluding Balochistan, in terms of percentage, is in single digits and also below the OGRA benchmark, i.e., 7.4 percent. The rate of increasing faulty meters is much higher than the rate of meter replacement and its continuous process.

In another case, audit officials highlighted six cases of fake meters installed for illegal commercial and industrial connections during fiscal years 2020-21 to 2022-23, which incurred Rs 123.6 million.

De novo fact-finding inquiry has been finalized and shared the same with the Audit. No substantial evidence of employee collusion or process lapses was observed during the fact-finding exercise; however, the fake meters were recovered with unauthorized use in an alien territory is contributing to an increase in UFG and adversely impacting the company’s financials.

Copyright Business Recorder, 2026