Karachi: The Karachi Chamber of Commerce and Industry (KCCI) President, Javed Balwani, has strongly opposed the Oil and Gas Regulatory Authority (OGRA)’s proposal to raise gas tariff for Sui Southern Gas Company Limited (SSGC). He criticized the move as unjust, arguing it would add to the burden on industries and the public already grappling with inflation and rising energy costs.
A Call for Fair Pricing
Balwani suggested OGRA should have recommended a decrease in gas prices instead. Factors such as reduced interest rates and minimized unaccounted-for gas (UFG) losses present a solid basis for reducing tariffs. He noted that OGRA’s recommendation for a price hike disregards the recent interest rate cuts, which is unexpected and unwarranted.
Export Sector at Stake
The KCCI president reminded the government of its commitments to support the export sector by reducing gas prices. He pointed out that OGRA’s recommendations contradict these assurances, undermining efforts to keep industries competitive in the global market.
Addressing SSGC’s Financial Challenges
Balwani highlighted SSGC’s financial difficulties, particularly its provision of 200 MMCFD gas to Balochistan without any revenue. He questioned how OGRA could justify a tariff hike without accounting for this revenue deficit.
Emirates Opens A Unique Store in Karachi
Impact on Industries and Exports
The proposed 25.78% increase for SSGC would severely affect manufacturing and exports, which had recently shown signs of recovery. Balwani expressed concern that anti-business measures like this stifle economic growth and competitiveness. He warned that industries relying on gas-powered captive power plants would face significant setbacks, leading to wasted investments and heightened uncertainty.
Appeal to the Prime Minister
The KCCI president urged Prime Minister Shehbaz Sharif to reject OGRA’s proposals. He called for immediate steps to prevent additional financial pressure on industries and consumers. Balwani emphasized focusing on addressing the root causes of revenue shortfalls, such as gas theft, instead of burdening consumers with price hikes.
Javed Balwani concluded by appealing to the government to prioritize the nation’s economic welfare, reject the proposed tariff increase, and ensure sustainable economic growth.
Follow Day News on Google News, Instagram, YouTube, Facebook, Whats App, and TikTok for latest updates