Gas tariff increase would kill industries in Pakistan
Monday, 02 Nov 2009
Daily Times cited Mr Abdul Majid Haji Muhammad president of Karachi Chamber of Commerce & Industry as saying while expressing his deep concerns on increase in gas tariffs that the 26% proposed increase would cause commotion within trade & industry as well as the common man and henceforth strongly criticized and rejected it.
He said that due to unjustified and unprovoked policies of OGRA and NEPRA the cost of doing business has gone exorbitantly high and as a consequence numerous industrial units are working under-capacity and many are closed down. This increase would have a killing effect on the industries that are gas dependant.
Mayhem in trade & commerce would not only decline the revenue for the government but also lead to massive unemployment.
Mr Haji Muhammad said that SSGCL and SNGPL are 2 entities of same company sustaining a monopoly, however, it is strange to learn that both companies are offering different tariff structures.
He lamented that during the past, gas prices of various fields in the country were linked to oil prices in the international market. In July 2008, oil prices rose to USD 147 per barrel which faced a dropdown in August and prices were USD 73 per barrel and presently the dollar parity is around USD 75 per barrel. Now that the prices of oil have faced downward revision, the gas companies despite decreasing the tariffs are unjustifiably crying for further increase in tariffs.
SNGPL has asked OGRA to increase the average prescribed price for the January to June of 2010 by PKR 79.65 per million British Thermal Unit to PKR 312.43 per MMBTU and SSGC in its petition has sought an upward revision by PKR 57.22 per MMBTU to PKR 288.85 per MMBTU for January to June 2010 period.
