The federal government has given June 30, 2019 deadline to gas companies - Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) - to reimburse/adjust Rs 2.5 billion to consumers against inflated gas bills. A parliamentary panel was apprised on Friday that 3.3 million gas consumers from three provinces including Punjab, Khyber Pakhtunkhwa and Balochistan were sent inflated gas bills. Minister for Petroleum Ghulam Sarwar Khan said he isn't hesitant in accepting that consumers were indeed sent inflated bills; however, such a step wasn't intentional.
The committee was informed that out of total 9.6 million domestic consumers, 3.3 million received inflated bills. Both the Sui gas companies checked 10,000 gas bills randomly on complaints and found 3,300 consumers received excessive bills in three provinces.
The minister informed the committee members that the process of reimbursing to affected consumers has already been begun. "Around Rs 50 million have already been reimbursed to 11,300 consumers who received inflated bills and process will be completed by June 2019," he said. "While I accept a mistake was committed, I also assure you that necessary rectification measures have already been initiated. Three separate committees are examining the issue of gas price hike and inflated bills, including an inter-departmental inquiry, an inquiry by AF Ferguson and a socially-constituted inquiry under the aegis of the Prime Minister Inspection Team."
He said inquiry reports of AF Ferguson and inter-departmental inquiries would be completed by March 22, 2019 and shared with the Parliament. Talking about the reason behind the inflated bills, he said technical mistakes in introducing seven slabs for gas consumers on Sep 27, 2018 and imposition of pressure factor beyond 2 percent were the causes of inflated bills. "The inquiry reports will also fix responsibility about the person who was involved in levelling above 2 percent pressure in the gas bills," he said. He argued that the government of Pakistan Tehreek-e-Insaf (PTI) increased gas tariff because the previous government of Pakistan Muslim League-Nawaz (PML-N) gave subsidised gas to consumers and failed to control one percent increase in unaccounted for gas (UFG) which resulted in Rs 154 billion financial losses for both the gas companies. "The previous PML-N government froze gas prices and new connections for 4 years and lifted this ban during the last year of their government. Gasification schemes worth Rs 55 billion were introduced to win 20 to 30 seats which technically amounts to pre-poll rigging," he added. The minister further disclosed that the UFG of SNGPL and SSGC reached 11 percent and 13 percent respectively. He reiterated his resolve to continue working hard towards eliminating UFG losses which in Balochistan alone stand at 72 percent.
Highlighting some of the challenges being faced by gas companies in curbing UFG, the minister shared outcomes of the meeting he had in Quetta with the chief minister, members of the provincial assembly across party spectrum and other relevant stakeholders. The minister shared with the committee the recent adoption of a resolution by Balochistan Assembly for introducing a flat rate for natural gas in the province. The minister assured that the ministry is in constant contact with the government of Balochistan in extending genuine relief, cooperation and addressing genuine concerns of the province.
"We are also taking into consideration the political aspect, in case flat rate is given to gas producing province of Balochistan, what would be reaction of other provinces," he said.
The acting managing director SSGC informed the committee that 1.7 bcf additional gas (33 percent) was added in the system for Balochistan to address the low gas pressure but due to huge UFG, it became non-effective.
The meeting commenced with discussion on low gas pressure in Kallat, Mastung and Ziarat. The committee was informed that measures are being taken to improve the system and that 5 CCF gas was distributed in January and this month 7 CCF gas was supplied which is 1.7 CCF more than last year. Pipeline modification has also been conducted.
Senator Mir Kabir Ahmed Muhammad Shahi was of the view that even though there has been improvement, the gas supplied to Balochistan is less than requirement. He said these areas experience temperature in minus degrees during winters due to which provision of more gas is necessary for sustainability. He also raised the issue of exorbitant billing in the area.
Senator Dr Jehanzeb Jamaldini agreeing to the issue said it is costing the environment dearly and during winters numerous sanober and juniper trees are being cut. He said it is imperative that stringent measures are adopted to deal with this in a timely manner. He urged the committee to take a strong stand so that this issue is dealt effectively once for all.
Senator Mohsin Aziz chaired the Senate Standing Committee on Petroleum on Friday which discussed reasons and justification for increasing slabs and gas prices in the country and its negative impact on the general public and industrial sector.
The minister assured the members of the committee that LPG air plants mix are on schedule in Balochistan. The acting MD SSGCL added that the construction work on four LPG air plants mix would commence in current month and work on rest of plants would start next month.
The committee also discussed lifting of moratorium on new industrial gas connections in provinces having surplus production and uniform application of LNG price for export-oriented industries in all provinces other than Punjab.
The director general gas, Ministry of Petroleum, assured the committee that the recommendations of committee regarding uniform application of LNG price for export-oriented industries in all provinces would be sent for consideration of competent forums.
While discussing the present status of Gas Infrastructure Development Cess (GIDC), the committee was informed that the federal cabinet has directed that reduction in cess rate prospectively will be allowed to those consumers/sectors who will undertake to pay the balance 50 percent arrears, option of non-cash settlement for GST, subsidy or DLT claims will be given as well. Also directives were given that Ministry of Industries and Production will ensure that reduction in fertilizer prices due to levy of reduced cess rate prospectively must pass on to the end consumer and that GIDC shall be used for the infrastructure development of gas projects.
Comments
Comments are closed.