ECC wants to revise the SSGC UFG benchmark to cut losses  

By Newztodays Team

The economic coordination committee (ECC) has suggested taking up the matter of revising SSGC UFG benchmarks and revenue shortfall with the oil and gas regulatory authority (Ogra).

 Sources said that the economic coordination committee was informed about the issue of non-payment of gas bills in Baluchistan, which greatly affected SSGC.

It was stated that due to the limited paying capacity of consumers in Baluchistan, the proposed tariff would inflate their gas bills.

It was stated that some resolution for the high gas bills and recovery through any mechanism should be introduced so that SSGC did not suffer further losses.

It was further stated that the consumption ceilings in both the protected category and the non-protected category of consumers should be reconsidered as against the uniform tariff being proposed.

ECC observed that the issue of Balochistan as highlighted should be holistically considered by the Petroleum Division and some measures should be taken to address it in the wake of the proposed increase in bills.

It was suggested that matters regarding the revision of the UFG benchmark and revenue shortfall of SSGCL in Balochistan should be taken up with OGRA to reduce the company’s losses.

It was also suggested that a change in gas tariff should be made effective prospectively from 1st November 2023. The forum agreed to the proposal.

It was proposed that the Petroleum Division should hold consultations with the provinces on the
revised gas tariff and develop a media strategy as well as a narrative for awareness of the
masses in respect of revision in gas tariff.Ogra Notifies Massive Increase in Gas Prices for Consumers

It was also noted that a substantial increase is proposed in the gas tariff which will have implications for consumers, especially the domestic ones.

Another view was that the proposed increase in gas prices was necessary for meeting the revenue requirements of gas companies in CFY as well as to address the issue of gas circular debt.