ISLAMABAD: Taking up a petition against increase in Unaccounted for Gas (UFG) benchmark from 4.5 percent to 9 percent in the gas bills, the Islamabad High Court (IHC) issued notices to the Secretary Cabinet Division, the Ministry of Petroleum & Natural Resources, the Ministry of Finance and the Oil & Gas Regulatory Authority (OGRA) and sought comment from Attorney General within fortnight.
It is to be noted that through raise in UFG, the government wants to shift gas pilferage burden to the public.
Advocate Farruk Dall moved the IHC against the increase on the ground that it will result in a manifold hike in gas tariff. The petitioner cited Federation of Pakistan through Secretary Cabinet Division, Ministry of Petroleum & Natural Resources, Ministry of Finance and Oil & Gas Regulatory Authority (OGRA) as respondents.
Justice Athar Minallah while issuing notices to the respondents also sought comments from the Attorney General within a period of fortnight. The petitioner submitted that Constitution did not allow such measures which might aim at disturbing/affecting economic life of the general public.
The Constitution envisages a whole range of Articles 3, 4 and 5(2) 9, 14, 18, 23 and 24 which have a direct nexus with good economic governance and fundamental rights. The UFG benchmark of 4.5 percent was fixed by OGRA for Sui-Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Company Ltd (SSGCL) from fiscal year 2011-12 to 2014-15 whereas through an illegal decision the Petroleum Ministry and OGRA are trying to increase UFG benchmark from 4.5 percent to 9 percent on the pretext of non-consumers gas theft, law and order situation and bulk/retail ratio which is illegal/unlawful act on their part. This is being done despite Prime Minister’s deferment for change in the gas pricing mechanism that is estimated to increase consumers tariff significantly. The combined impact on the consumers would be Rs65 to 70 billion if the decision is implemented. In fact 4.5 percent UFG benchmark fixed by OGRA in the consumer tariff was meant to reasonably cover the cost of pilferage, leakage, loss in security situation and all other difficulties.
The government and the regulator are obligated to launch the campaign against gas theft rather passing on the theft of gas to the consumers. Theft of gas has contributed towards increase of UFG but the same should have been curtailed after the promulgation of Criminal Amendment Act, 2011. The petitioner has prayed to the IHC to declare the increase in UFG illegal and unlawful.
