Oil and gas com­pa­nies vi­o­lat­ing Ogra de­ci­sions

The Pak Banker - - NATIONAL -

The Pak­istan Econ­omy Watch (PEW) on Sun­day said oil and gas com­pa­nies are vi­o­lat­ing de­ci­sions of Ogra to max­imise prof­its on the cost of con­sumers.

Fed­eral Min­istry of Pe­tro­leum and Nat­u­ral Re­sources has started by­pass­ing oil and gas reg­u­la­tor in favour of oil and gas com­pa­nies which amounts to fol­low­ing the foot­steps of the for­mer pe­tro­leum min­is­ter Dr. Asim, it said.

Oil and gas com­pa­nies con­tinue to use en­ergy cri­sis to mint money while the reg­u­la­tor has in­ten­tion­ally been kept im­po­tent since long, said Dr. Mur­taza Mughal, Pres­i­dent PEW. In a state­ment is­sued here to­day, he said that Ogra quo­rum was kept in­com­plete for years while a num­ber of in­com­pe­tent of­fi­cials were posted there to make it weak so that it could not im­pose crit­i­cal de­ci­sions.

Dr. Mur­taza Mughal said that SNGPL and SSGC hasn't ac­cepted a sin­gle im­por­tant de­ci­sion of the reg­u­la­tor while it has chal­lenged al­most ev­ery de­ci­sion re­gard­ing tar­iff to max­imise its un­due prof­its. Re­cently Ogra rec­om­mended a cut of Rs 7.00 in the prices of petrol but govern­ment only re­duced prices by Rs 1.00 only vi­o­lat­ing ba­sic rights of masses, he added.

This ten­dency is very dan­ger­ous as gas is very im­port part of the en­ergy mix cater­ing for 50 per­cent of the en­ergy re­quire­ments. Power gen­er­a­tions sec­tor is us­ing 33 per­cent of the to­tal nat­u­ral gas out­put while do­mes­tic con­sumers are us­ing 23 per­cent of the to­tal pro­duc­tion. Fer­tiliser sec­tor is con­sum­ing 13 per­cent of gas, in­dus­try is util­is­ing the same amount while nine per­cent of the gas is be­ing used by trans­port sec­tor, he in­formed.

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