INDUSTRIALISTS SHOCKED TO LEARN ABOUT 13.5 PER CENT INCREASE IN GAS PRICES FOR ALL SECTORS EXCEPT FERTILIZER SECTOR

Karachi (9th August 2011):

Industrialists and traders alike have criticised repeated hike in gas prices and said that gas is also the lifeline like petroleum products and increase in its prices will raise the cost of doing business. Taking serious notice of the adverse impact of the decision on cost of manufacturing of industry and common masses who are already burdened with the price hike of essential commodities, business leaders said it will increase inflation, which is already in double digit.

Criticising the increase of gas prices for all sectors except fertiliser sector, Mr. Abdul Wahab Lakhani, Chairman, S.I.T.E. Association of Industry said he failed to understand as why the government has increased gas prices in a short span of time repeatedly.

Mr. Abdul Wahab Lakhani said that as he remembered the Oil and Gas Regulatory vide S.R.O.(1) /2010 dated 10th June 2010 the Authority, in super-session of its notification No. S.R.O.20 (1)/2010 dated 8th January 2010 and S.R.O. 68(I)/2010 dated 9th February, 2010 notified the sale prices and minimum charges specified in schedule below, for the purposes of the said Ordinance, in respect of natural gas sold by the Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited to various categories of their retail consumers with effect from 1st July, 2010.  For all consumers engaged in the processing of industrial raw material into value added finished products irrespective of the volume of gas consumed including hotel industry but excluding such industries for which a separate rate has been prescribed according to which sale price was fixed Rs.382.37 per MMBTU and Minimum charges Rs.12,893.29 per month.

Now the gas price has increased to Rs.434.18 per MMBTU from Rs.382.37 per MMBTU and minimum charges have also risen to Rs.14640.29 per month from Rs.12893.29.

Oil and Gas Regulatory Authority (OGRA) for further burdening the manufacturing sector with the hike in oil prices at a time of high inflation, the industrialists and the business community demanded that the increase in the prices of petrol, diesel, LPG, CNG etc be immediately rolled back. They said that increase in oil prices will inflict this heavy blow on industrial sector at a time when the country was facing a very high inflation rate, especially in food items.

They said that the government has forgotten the poor and added that such an unprecedented hike will put an additional burden over the people who are already facing hardships due to sky rocketing prices of the essential commodities. They said in reality, present and past governments never bothered to work for the mitigation of sufferings of the people and ensure that they are in a position to manage two times meal for the family.

The further said that the industrial workers have already started demanding increase in salary and now after this hike in oil prices, they will further press the industrial units to increase salaries. They said that the PPP led federal government has bombed the manufacturing sector and general public by announcing the unmatched increase in gas prices that was unbearable and unacceptable for everyone.

Chairman SITE Association of Industry, Mr. Wahab Lakhani said that there is no need to increase gas prices if government includes fertiliser sector and bring it into the tariff net work instead of giving the zero percent raise. It is very shocking to note that incumbent regime, which had earlier claimed a 100 percent increase for the sector, has succumbed to the pressures of the most influential sector in the country and decided to shift the burden on to other sectors.

SITE Chief strongly condemned the move of the government and the OGRA to increase gas prices 13.5 percent for all sectors except fertilizer sector. This would have very negative impact on already deteriorated business conditions and cost of doing business will be increased and we will be in competitive with the rest of world community, he added.