KARACHI - Karachi Chamber of Commerce & Industry’s (KCCI) President Mian Abrar Ahmad has demanded of the government to withdraw increase in gas tariff for the industry.
In a press statement, he stated that it was noted with surprise that gas tariffs have been enhanced in contrast to the OGRA’s recommendation wherein OGRA recommended for reduction in tariff across the board and OGRA had adopted the prescribed method WACOG (weighted average cost of gas) wherein the open market crude oil prices are the criteria for determination of the gas tariff and it is a common knowledge that oil prices in the world market drastically reduced from 135 to 140 dollars to 80 dollars. “So, the tariff should have been revised down by 40 percent,”he said.
He said that to utter surprise tariff has been enhanced by more than 10 percent for industry while it is further surprising that CNG tariff has been reduced.
President KCCI stated that this singular step of enhancing the gas tariff would retard the exports from Pakistan and especially the value added sector of textile would suffer the severest blow as already Bangladesh gas tariff is lower by more than 50 percent to that of Pakistan.
He was also of the opinion that utilities are never the tool for revenue generation and government must refrain from doing so. He further commented on creating disparity between the two sectors and reducing the tariff for a sector which is considered to be the ‘cause for today’s energy crisis’ and to enhance for a sector which is the backbone of Pakistan’s economy.
The idea of imposing Gas Infrastructure Development Surcharge (GIDS) is also not accepted, he maintained.