SNGPL, SSGC line losses reach Rs52 bn annually, PAC told

ISLAMABAD: Public Accounts Committee was informed that line losses of both the gas companies-Sui Northern Gas Pipeline Ltd (SNGPL) and Sui Southern Gas Company Ltd (SSGC) reached around Rs52 billion annually.
SNGPL’s Managing Director Uzma Adil Khan told PAC meeting chaired by Khursheed Shah that unaccounted for gas (UFG) which is line losses, gas stealing and leakages has reached Rs22 billion while SSGC’s Managing Director Khalid Rehman told the committee that the line losses in Sindh and Balochistan has jumped to 15 percent and in terms of financial losses to Rs30 billion annually.
The officials of both the gas companies gave the reasons of ban on new connections and loadshedding were the main causes of the gas theft and even in some areas of Balochistan line losses due to gas theft has gone up to 50 percent.
Ministry of Petroleum and Natural Resources Secretary Arshad Mirza was of the opinion that new methods should be adopted for the reduction of lines losses and gas theft.
While the PAC was of the opinion that the government had to take the political decision to take action on the losses in Balochistan due to gas theft, attacks on gas pipeline and other losses and if no decision taken then it would have negative impact. Ogra Chairman Saeed Ahmad Khan said like line losses in electricity, there are line losses in gas which were passed on to the consumers. He told the Committee that on the audit objection of 2010-11, Rs 2.86 billion were passed on to the consumers. He told the Committee that the Ogra has fixed the limit of line losses at 5 percent but later on gas companies jacked up the line losses limit to 7 percent but the Ogra reduced it again on 5 percent and on this gas companies approached the Lahore High Court. He said the LHC has given the verdict in March 2013 in the favour of the Ogra while vacating the stay order.
“The NAB also prepared the reference to jack up the lines losses limit to 7 percent from 5 percent,” he added. The Ogra chairman was of the opinion that the government has to establish the tribunals to resolve these kinds of issues among the government institutions but in the absence of such kind of tribunals, the government departments approach the courts to settle their disputes. PAC member Shafqat Mehmood questioned that why the additional amounts which were collected from the consumers in the shape of line losses were not refunded to the consumers in the light of the court decision. SSGC managing director told the Committee that in Sindh the line losses of 11 percent were due to gas pilferage and share of gas theft is 4 percent while in Balochistan this share is around 15 percent.
PAC Chairman Khursheed Shah also directed for recovery from those oil companies which were overcharging despite the reduction in petroleum prices and report back to the Committee within 30 days. He directed that to audit the overcharging from the oil companies, help could be sought from the official receipts.