Huge gas losses

2026-02-21 - 21:03

AS circular debt in the gas sector has swelled to Rs. 3.283 trillion, the combined annual losses of Sui Northern and Sui Southern Gas Company, estimated at around Rs60 billion, have sparked demands from parliamentarians for prompt reforms and possibility of divestment of the two companies. Representatives of the two companies told the National Assembly Standing Committee on Petroleum that theft and leakages, called unaccounted for gas (UFG), has been brought down in the two companies but the rate was still much higher than acceptable limits. No doubt, both the Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company (SSGC) have been taking measures to contain the loss but the sector continues to face a major crisis with high, persistent losses that are routinely passed on to consumers. The MPs pointed out that theft mostly occurs in the industrial and commercial sector in collusion with the corrupt officials but domestic consumers are penalized by way of frequent increases in tariff. In addition, there is the problem of meterless gas, which includes both unmetered consumption and the broader crisis of illegal, unregulated, or malfunctioning connections, a major contributor to the UFG losses reaching seven times the world average. It is lamentable that like the Kunda system in the power sector, there are entire regions where officials are unable to install gas meters because of resistance of local communities on the pretext that gas producing areas have a right to free or unmetered gas. This problem needs to be resolved and it is the responsibility of the elected leadership of these areas to play a role for the purpose.