KARACHI: The President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi, has strongly opposed the Oil and Gas Regulatory Authority (Ogra)’s recommendation to increase gas tariffs for Sui Southern Gas Company (SSGC).

He warned that this proposal would place undue pressure on industries and the public, already struggling with rising inflation and energy costs. Junaid Naqi argued that the economic conditions do not justify such an increase, highlighting that the move disregards recent reductions in unaccounted-for gas (UFG) losses and interest rates. Instead of proposing a hike, OGRA should have suggested a reduction in gas prices, he stated, adding that such measures are critical to ensuring the competitiveness of local industries in global markets and supporting exports.

The KATI President reminded the government of its commitments to facilitate export-oriented industries, emphasizing that OGRA’s proposal contradicts these assurances.

He urged Prime Minister Shehbaz Sharif to direct OGRA to revise its recommendations and adopt policies that are supportive of both the public and the industrial sector.

He also pointed to inefficiencies, such as unaddressed gas theft and system improvements, as major contributors to financial challenges faced by gas distribution companies. He called on the government to address these underlying issues rather than passing the financial burden onto consumers.

Highlighting the risks of the proposed tariff hike, Naqi warned that industries relying on gas-fired captive power plants could face severe setbacks, including lost investments and further uncertainty in the business environment.

Copyright Business Recorder, 2024