SSGC seeks price increase, enrages industry.

ISLAMABAD -- Despite a 26 per cent reduction in its cost of gas, the Sui Southern Gas Company on Thursday sought about Rs38 per unit (6pc) increase in prices which was vehemently opposed by more than a dozen industrial and trade associations, making a case for at least 30pc reduction to stimulate economy.

At a public hearing organised by the Oil and Gas Regulatory Authority (Ogra), majority of the intervenors lamented the poorly managed public sector utility was even trying to deprive the benefit of international oil price crash instead of extending a helping hand in the time of crisis and lockdowns to revive businesses, commercial activities, exports and transport and ultimately employment.

The hearing, presided over by Ogra Chairperson Uzma Adil Khan, in Islamabad was attended by most of the intervenors through videolink from Karachi. They were generally of the opinion that lockdowns had hit the business hard but the utility was seeking increase in gas prices to put multi-billion rupees of additional burden on the consumers.

SSGC Acting Managing Director Amin Rajput said that cost of gas amounted to 90pc of the total sales price and the company faced financial challenges such as; high unaccounted for gas (UFG); up to nine month billing installments under the government policy, huge receivables from Pakistan Steel, K-Electric; and tax refunds from the Federal Board of Revenue.

He said both the gas companies - SSGC and SNGPL - were going under due to prior year outstanding adjustments that were approved by the regulator as legitimate heads but could not be notified by the government and Ogra. He pleaded that the latter should take up the matter with the centre for adjustment of Rs200 billion outstanding amount...