Senate body opposes ‘Weighted Average Cost’ proposal for gas price
ISLAMABAD: The Senate Standing Committee on Petroleum Tuesday opposed a proposal, being considered by the quarters concerned, to introduce the ‘Weighted Average Cost” method for determining the gas price under the slab-mechanism in the country.
The committee meeting, chaired by Mohsin Aziz, was of the view that the proposed formula should not be applicable on the provinces producing gas as it would hurt their interests and increase concerns.
The body was informed that currently around four different tariffs of gas existed in the country that needed to be streamlined for better efficiency of the sector.
The committee members expressed annoyance over delay in setting up Liquefied Petroleum Gas (LPG) air-mix plants in Balochistan and not calculating consumer tariff/subsidies in their feasibility reports.
The parliamentarians were informed that the gas price under the air-mix plants would be higher than the piped gas, and now the matter was being taken up with the Economic Coordination Committee (ECC) for deliberation.
Secretary Petroleum Division Mian Asad Hayauddin said there should be a special energy package for the Balochistan province keeping in view its different dynamics. Accordingly, he said, a proposal would be forwarded to the ECC.
Among others, the meeting was attended by Senators Nauman Wazir Khattak, Dr Jehanzeb Jamaldini, Shammim Afridi, Bahramand Khan Tangi, Mir Muhammad Yousaf Badini, Mir Kabeer Ahmed Muhammad Shahi, Sherry Rehman and Muhammad Usman Khan Kakar, besides senior officials of the Petroleum Division, Oil and Gas Regulatory Authority, Sui Northern Gas Pipelines Limited and Sui Southern Gas Company. – APP