Business community rejects raise in gas price

N H ZUBERI

KARACHI: Business Community has rejected the 9.87 percent increase in gas price pronouncing it an anti-industry and anti-economy move by the Oil and Gas Regulatory Authority (Ogra).

The business community on Monday showed its deep concern over the increase in gas price and termed it an irrational decision, especially for the industrial sector that is already facing enormous problems.

The business community strongly protested against OGRA recommendation to allow a 9.87 percent hike in gas tariff from January 1, 2013 as it would kill the industry and put an unbearable burden on the common man. They feared that the country would witness another spell of price hike of all products produced in the country due to this decision. And believed that a hike in gas prices would affect the overall inflation.

They said that the government had neither gas nor electricity to run the industrial units. And the government was slowly poisoning the industries.

The increase in gas prices amounted to taxing the people and imposing a mini-budget on them and destroying the sanctity of the national budget. The business community was of the view that the industry was already under extreme pressure due to the consistent power and gas shortages and prevailing law and order situation, making foreign and local investors hesitant in investing here.

They said that the unprecedented increase in the prices of petroleum products, gas and power had already put the industry at an disadvantage as far as consumers were concerned. They termed the recent hike a fatal blow for the industries and the poor masses.

Former Vice Chairman, Korangi Association of Trade and Industry Jawaid Qureshi was of the view that such a harsh decision may result in widespread discontent amongst the business community. The closure of the industry due to the detrimental affect of the high cost of production due to higher utility tariffs and prevailing law and order conditions would lead to flight of capital, massive unemployment and decline in the revenue of government.

The government was making a commitment to improve the working environment but no improvement had been witnessed so for. Exports, particularly of textiles were continually declining, he added  He said that the industries which were working 24 hours a day were now operating only 12 hours a day due to the high cost of manufacturing, non availability of gas and prevailing law and order conditions in the city.

Mohammad Ali said there was a wide difference between the tall claims of  the government on public welfare and the actual steps taken. He alleged that the government was implementing a plan to further push industries towards early closure.

He expressed the fear that the KESC was operating its generators on gas and now they would also plead for increasing power tariff.