Industrialists flay 14 percent hike in gas tariff

Industrialists have flayed the Oil and Gas Regulatory Authority's (Ogra) decision to increase gas tariff by 14 percent effective from July 1, 2014. Strongly disapproving the regulatory body's decision, they said the increase in gas tariff was a shocking Ramazan gift form PML-N government for business community and general public.
They said that all the increases made in the past were without taking into account its impact on prices of locally-made goods as well as paying capability of general public which has tremendously pushed up power and gas theft. Chairman SITE Association of Industry (SAI), Younus M. Bashir, while expressing concerns over the 14 percent hike in gas tariff by Ogra has said that the imposition of Gas Infrastructure Development Cess (GIDC) and exorbitant gas rates would cripple the industrial sector. According to him, levy of GIDC and increase in gas tariff would put the industrialists in trouble.
He termed the rise in gas tariff as last nail in the coffin of the ailing industry that is the backbone of the economy. Bashir commented that on one hand, the government announced Textile Package in the Federal Budget 2014-15, and on the other hand, it increased gas tariff which would hurt the textile sector badly.
He further stated that the gas tariff of Pakistan was already highest in the region and any further increase in tariff would make Pakistan's exports of textile products uncompetitive in the international markets resulting in closure of large number of industrial units.
He apprehended that the enormous increase in gas price would jeopardise the measures taken by the Government in Federal Budget 2014-15 to boost industrial activities and would leave negative impact on their competitiveness. He termed the rise in GIDC rate as punitive and unjustified and requested the government for an immediate review. He urged Finance Minister Ishaq Dar to withdraw the enormous increase in gas tariff forthwith and reject the Ogra summary in this regard.
Former Chairman Federal B Area Association of Trade and Industry (FBAATI), Masroor Alvi, said that the government was going to increase power tariff to meet IMF condition, besides increasing gas tariff. He pointed out that gas in not available with full pressure in Site industrial area and many units are operating either with reduced capacity or running at nights instead of day. Jawed Akhtar rejected the increase in gas tariff, saying that it is like dropping bomb on poor masses in Ramazan.
He pointed out that gas and electricity tariffs in Pakistan were already highest in the region and any further increase in tariff would made Pakistan's exports of textile products uncompetitive in the international markets. He demanded early withdrawal of the said decision, saying that relief must be provided to the masses and manufacturing sector.