Rs48 bn annual gas theft perturbs premier

ISLAMABAD: The increasing gas theft amounting to Rs48 billion per annum has virtually not only perturbed Prime Minister Imran Khan but also compelled him to ask both gas utilities--Sui Northern and Sui Southern to come up with the plan to curtail the UFG (unaccounted for gas) in the system.

The volume of UFG has increased to 116mmcfd out of which 56mmcfd gas is stolen in the system of Sui Northern and 60mmcfd in Sui Southern making the top man of the country worried about the appalling situation, a senior official told The News.

The managing directors of both the gas companies are currently in the process to carve out the plan to reduce the UFG in the system and both the heads of the gas companies will sensitise the chief executive of Pakistan Imran Khan about their plan to curtail the menace of the unaccounted for gas to a reasonable level to 5 percent.

The spokesman of the Petroleum Division, Additional Secretary Sher Afghan, said the system is losing the of 116mmcfd precious gas in the head of unaccounted for gas valuing Rs48 billion per annum.

This is a huge loss to the system, he said. The Oil and Gas Regulatory Authority (Ogra) has extended the allowance of 6.3 percent meaning the gas consumers are paying the cost of 6.3 percent loss in the system in gas tariff. However, 4.5 percent loss in Sui Northern and 7.5 percent gas losses in Sui Southern are borne of the shareholders of both the companies.

He said the overall losses should be contained to five percent which is at par with the international standards. He also went on to say the end gas consumers are currently being forced to pay for the additional 1.3 percent losses in the gas tariff and to also erase out the UFG, the managing directors of both the countries have been ordered by the premier to come up with the plan by Monday next.

However, the official at Petroleum Division said in the tariff, Ogra included end gas consumers are paying one percent additional for the gas theft being done in Karak, Hangu and Kohat in KP and 0.3 percent in the head of non-gas consumers.

Other senior officials requesting anonymity said that in a country where the gas pipeline networks have swelled up to 1, 45,000 kilometres in the country, the gas theft will continue to haunt.

They said in last 15 years, the piped gas network has increased manifold and currently there are many gas schemes initiated by the former government and now under the new government, there is still a huge pressure to provide the gas connections to more masses under new gas schemes.

Unless and until the piped gas connections are stopped, the menace of gas theft cannot be controlled.