Masses paying for mismanagement of gas companies: PEW

Lahore: The Pakistan Economy Watch (PEW) on Sunday said mismanagement and high charges by different government departments has made LNG costly than the furnace oil which can damage the project. The high price of LNG has discouraged customers as IPPs have refused to use the Liquefied Natural Gas despite persuasion by the government which is a threat to the survival of the project.

Moreover, the fertiliser sector is utilising LNG but not paying the bills in full using excuse of absence of the price notification by the Ogra which is adding to the circular debt. He said that the supply of furnace oil is dependable while the supply chain of LNG is unpredictable which is dispiriting different gas consuming sectors.

Dr. Murtaza Mughal said that apart from taxes, the SNGPL, SSGC, PSO, terminal operators and port authorities are charging up to five dollars per mmbtu of LNG which must be slashed by 50 percent. He said that LNG is to become attractive if it is cheaper than the furnace oil for which charges of different agencies should be reduced and commodity is purchased transparently besides barring gas companies to slap 11 percent UFG losses on the imported gas. Gas companies are behind losses and theft of gas worth 40 billion annually therefore masses should not pay for it, he said.

Dr. Murtaza Mughal said that a gas company overlooked the capacity of pipeline to transport gas while inking agreement with terminal operators which has resulted in fines to the tune of millions of dollars which are added in the bills of consumers illegally. Government also ignored the international norm to bind customers through agreements before the import of LNG and now lack of interest of buyers has emerged as a big threat.