SNGPL plea against lowering of UFG benchmark allowed

Published July 20, 2021
The Ogra had reduced the UFG benchmark at 6.3 per cent for distribution and 0.3pc for transmission instead of allowing actual UFG as per past practice. — Wikimedia Commons/File
The Ogra had reduced the UFG benchmark at 6.3 per cent for distribution and 0.3pc for transmission instead of allowing actual UFG as per past practice. — Wikimedia Commons/File

LAHORE: The Lahore High Court on Monday allowed a petition of the Sui Northern Gas Pipelines Limited (SNGPL) against the Oil and Gas Regulatory Authority (Ogra) for reducing the UFG (unaccounted for gas) benchmark while determining the price of regasified liquefied natural gas (RLNG).

Justice Shahid Karim announced a short order.

A detailed verdict would be released later.

The petition by the SNGPL contended that the regulator, while determining the RLNG price since August 2020, deviated from the decision of the Economic Coordination Committee of the cabinet issued in this regard and started applying consolidated system gas UFG benchmark on RLNG consumers of distribution segment.

The Ogra had reduced the UFG benchmark at 6.3 per cent for distribution and 0.3pc for transmission instead of allowing actual UFG as per past practice in line with policy guidelines by the federation.

The petition said the price was applicable from August 20 onwards and resulted in undue financial burden on the company. The SNGPL asked the court to set aside the decision of the Ogra being unlawful and arbitrary.

Published in Dawn, July 20th, 2021

Opinion

Editorial

29 Jan, 2022

Renewed insurgency?

THE last few days suggest that the Baloch insurgency is far from a spent force. According to an ISPR statement, 10...
29 Jan, 2022

Local star power

THE seventh edition of the Pakistan Super League is up and running. The T20 extravaganza opened on the back of a...
29 Jan, 2022

Tax on cellular services

THE increase in the withholding tax rate on cellular services — calls and internet usage — from 10pc to 15pc...
28 Jan, 2022

Never-ending debate

PAKISTAN is gripped by a debate on the presidential system, again. From apparently nowhere, calls for this system...
28 Jan, 2022

Riverfront verdict

THE Lahore High Court decision scrapping the controversial multibillion-dollar Ravi Riverfront Urban Development...
Karachi violence
Updated 28 Jan, 2022

Karachi violence

WEDNESDAY’S events in Karachi indicate that unless the controversy over the Sindh local government law is handled...