ISLAMABAD-Oil and Gas Regulatory Authority has said that there is massive difference in the actual cost of gas and the consumer sale prices of Sui companies leading to massive cross-subsidy, therefore, federal government may consider measures such as tariff rationalization for both indigenous gas and RLNG.
Sui Northern Gas Pipeline Limited and Sui Southern Gas Company Limited no more hold exclusive rights to operate in their franchise areas after June 26, 2010, therefore, federal government may consider issuing policy guidelines for encouraging private sector investments and competition in the gas sector, Ogra said in its comments on the summary presented by Petroleum Division to the Cabinet Committee on Energy (CCoE) for execution of new development schemes and provision of new domestic connections. OGRA has further commented that in order to meet the growing gas demand, the issues in the national gas sector may be reviewed holistically with possibility of adding additional molecules through private sector along with liberalization or market, the documents available with The Nation revealed. 
OGRA is of the view that there is massive difference in the actual cost of gas and the consumer sale prices of Sui companies leading to massive cross-subsidy, therefore, Federal Government may consider measures like tariff rationalization for both indigenous gas and RLNG in wake of recent amendments in the OGRA Ordinance, 2002. 
OGRA also awaited policy guidelines of the federal government on RLNG as per the recent amendments in the OGRA Ordinance, 2002. Moreover, utilization and release of GoP funds with respect to Gas Development Schemes do not come under the purview of OGRA. 
Petroleum Division in consultation with OGRA and relevant stakeholders of gas/RLNG supply chain is working on the development of guidelines in the light of amendments made in the OGRA Ordinance 2002. The same once finalized shall be placed before appropriate forum i.e. ECC/Cabinet for approval. 
In the summary the Petroleum Division had recommended to the Cabinet Committee on Energy (CCoE) that the decision of the CCoE dated December 20, 2022 may be amended and stipulation related to shelving of approved schemes as well as specific period of 2013 to 2018 for completion of incomplete schemas may be excluded. Sui companies will complete all ongoing/approved schemes where funds are available. The Steering Committee on SAP may be allowed to review/prioritize already approved gas schemes and utilization/diversion of funds from one approved gas scheme to any other approved gas scheme with the approval of Chairman Steering Committee on SAP.