Pakistan loses Rs60 billion annually to gas theft, officials admit

ISLAMABADL: Officials have revealed that the country loses around Rs60 billion ($150 million) annually to gas theft, with the cost ultimately passed on to consumers.

This was disclosed at a meeting of the National Assembly’s Standing Committee on Energy, chaired by Syed Mustafa Mahmood.

Officials from the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company (SSGC) acknowledged that Rs30 billion worth of gas is stolen annually from each company.

Committee members said much of the loss comes from industrial consumers illegally siphoning gas, while domestic customers bear the financial burden through higher bills.

Lawmaker Gul Asghar Khan noted that regulators, including OGRA, allow companies to recover theft-related losses from consumers rather than addressing the theft at its source.

Officials highlighted that in developed countries, unaccounted-for gas typically accounts for around 6 per cent of total supply, whereas SSGC experiences losses exceeding 10 per cent. They said SSGC loses around 30 billion cubic feet (BCF) of gas annually due to theft.

The meeting also discussed energy training funds held by petroleum companies.

PPP lamker Syed Naveed Qamar criticized the lack of policy guidance, saying funds had not been used for their intended purpose and called for provincial authorities to be involved in oversight.

Petroleum officials said that plans were being developed to ensure proper utilization of the training funds, but Qamar pressed for a timeline, warning that patience was running out.

The session underscored longstanding concerns over gas theft in Pakistan and its impact on consumers, while highlighting challenges in policy implementation and sector governance.