ISLAMABAD: The Islamabad High Court here the other day issued notices to the government on a petition that challenged shifting of gas pilferage burden to the public pocket.
The petitioner has prayed the court to set aside increase in the Unaccounted For Gas (UFG) benchmark, a technical term for gas pilferage, from 4.5 percent to 9 percent.
Farruk Dall Advocate has challenged the increase on the ground that it will increase manifold the gas tariff. The petitioner has 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. In his petition, the petitioner has held that Constitution of Pakistan does 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 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 Rs65-70 billions 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. He argued that Petroleum Ministry and ECC were not legally empowered to issue policy guidelines on UFG and provision of doubt debts in the first place as it is a direct jurisdiction of the OGRA which it has been exercising since 2002.
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.
