ACCORDING to media reports, the government has directed the Board of Directors and Managing Directors of the two gas utilities – Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Company Ltd (SNGPL) – to rationalize their operations and working to provide relief to consumers through lower tariff. They have been asked to reduce their benchmarks of unaccounted for gas (UFG) from 6.3pc to 4pc; bring down rate of return from 17 and 17.5pc to 15pc and one per cent reduction in rate of depreciation on assets.
The directions given to the companies to seek approval of these measures from their Board of Directors clearly show the commitment of the Government, as repeatedly given by Prime Minister Imran Khan, to bring down energy prices that are highest in the region and are considered to be one of the major hurdles in acceleration of economic activities and a factor that contributes to pushing of more people below the poverty line. These areas have been identified through a review of various options to decrease the gas sales prices with a view to providing relief to the gas consumers. Experts have long been advising that instead of increasing the tariff frequently, the profitability should be enhanced through increasing efficiency, bringing down the level of UFG, checking large-scale theft and investment in upgradation of the system. We hope that apart from rationalization of the tariff as per directions of the Government, the exploitative slab system would also be reviewed. Similar directions may also go to power companies to bring down the tariff besides review of different types of taxes imposed on electricity bills.
Good news for gas consumers
