The Oil and Gas Regulatory Authority (Ogra) is likely to further jack up gas prices by Rs 22.8 per British Thermal Unit (BTU) for all sectors, including compressed natural gas (CNG) sector. According to recent Orga notification, new CNG price in Potohar region is Rs 66.44 per kg, while in Sindh and parts of Punjab it is being sold at Rs 63.11 per kg.
In case of further increase in the gas prices it would be Rs 71.44 in Potohar region and Rs 68.11 per kg in Sindh and Punjab. Ghiyas Abdullah Paracha, Chairman of Supreme Council of All Pakistan CNG Association (APCNGA) said that the Ogra has invited APCNGA for hearings on August 22 and 23 for further increase in gas price of CNG sector by Rs 5 per kg.
Paracha said that the Authority wants to meet new development project expenses in the "extreme shortage of gas". APCNGA strongly rejects all the recent steps taken by the government in connection with hike in gas prices as it is unjust and unfair to the gas consumers of Pakistan. "The government is compelling us to come on roads along with transporters and civil society," he said.
"If the Authority is further increasing gas price it would be difficult for owners of CNG stations to remain in the business. We have invested billions of rupees in the sector as at that time the government was encouraging establishment of CNG stations and now the government is bent upon shutting down CNG stations across the country" Paracha added. He said that the country was facing severe gas shortage, while Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company are still providing new connections to countless villages and towns on the basis of political pressure.
Paracha said that the objective of this mammoth increase is to save Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company (SSGC) from default promised on inductions of some 7,000 new employees on political basis during the last two years.
Ogra has determined the tariff increase on petitions filed by SNGPL and SSGC to cover abnormally high UFG (unaccounted for gas) losses of 10-12 percent by these two companies. According to analysts, this massive gas price hike applicable on domestic as well as industrial and the CNG sector would lead to a significant increase in inflation as transportation costs would also go up. The increase in gas price would also increase the cost of production of the industrial sector, besides pushing up prices of essential commodities.
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