High gas rates hit hard common man to industry

Consumers at large have rejected the new gas tariff inclusive of fixed charges terming it unjustified and illogical and a heavy burden on the poor keeping in view their already deteriorating financial situation. Criticising the government for neglecting the common man to take effective steps to ease his life, people have demanded immediate withdrawal of the hike in gas prices

The bill for December 2023 was Rs7,711 for January 2024 bill has broken all records, as it is Rs25380 and includes Rs2,066 fixed charges separate from the increase in the tariff. This has also entailed an increasing impact on general sales tax which amounts to Rs. 3,87 on the said amount

The interim government has broken all records of the PTI government and the preceding PDM coalition rule by enormously increasing the prices of natural gas and many other utility bills such as water and sanitation, power and charges of other public utility services. It is observed that the caretaker government after taking the oath through its ministers and their advisers and heads of state departments have given a tough time to the masses. The situation has become that in summer Nepra increases the prices of power tariffs forcing the masses to spend the hot days without any relief, and in summer Ogra increases the prices of natural gas, not to let them have a comfortable meal at home.

The latest increased price was unbearable to the common man because it jumped to almost 500%. It is a big fraud to the users of natural gas that such rates have been slapped which has no justification and makes a mockery of their plight by providing all utility services to the elite class free of charge and in bulk. The government should abolish the slap rates system immediately and give some relief to the masses. It seems that the government wants the people to disconnect their gas connections and use LPG when currently, LPG is less costly than natural gas.

The masses also appeal to the Chief of the Army Staff (COAS) Syed AsimMunir to look into the matter and direct the Nepra to stop cruelty tactics against the masses.

Consumers at large have rejected the new gas tariff inclusive of fixed charges terming it unjustified and illogical keeping a burden on the poor given their already deteriorating financial situation. Criticising the government for not taking effective steps to ease the life of the public at large, they have demanded immediate withdrawal of the hike in gas prices.

Since we were already under immense financial stress due to the massive increase in the power tariff, sky-rocketing prices of commodities etc, the recent hike in gas tariff with effect from Nov 1, has crushed us completely, said a citizen on the condition of not being named. The bill for December 2023 was Rs7,711 for January 2024 bill has broken all records, as it is Rs25380 and includes Rs2,066 fixed charges separately from an increase in the tariff. This has also entailed an increasing impact on general sales tax which amounts to Rs. 3,87 on the said amount.

Army Chief is playing a vital role in fixing the economy of the country, controlling the smuggling of US dollars and improving the financial health of the country. This however is not possible without ensuring the basic amenities to the poor as they are the rudimentary factor in moving the wheel of the national economy. Gen. AsimMunir also reaffirmed the military’s support to the caretaker government to revive the economy, particularly through projects under the newly established Special Investment Facilitation Council (SIFC).

If the gas prices are dear to doing business and the cost of production are also increased multiple people are unable to have this basic facility. The traders and business community across the country lamented the too-high tariff of natural gas which forced them to close down their businesses and trades. Muhammad Farooq Shaikhani, President of the Hyderabad Chamber of Small Traders & Small Industry, has expressed deep concern over the significant 194% surge in gas prices in November 2023. This surge resulted in the closure of over 30% of the country’s industries, causing severe economic hardships for the people. To adhere to the conditions of the $3 billion IMF loan and manage the outstanding loans of SSGC and LNGC, the Pakistani government has now decided to reduce gas prices by 41% until mid-February. Unfortunately, this impending price increase is perceived as an additional burden on businessmen, industrialists, and the general public, exacerbating their challenges.

President Muhammad Farooq Shaikhani highlighted the challenges Hyderabad’s globally renowned glass bangle industry faced, attributing its woes to persistent load-shedding issues and escalating gas prices. Regrettably, 80% of the bangle factories have shuttered, resulting in the unemployment of around 200,000 individuals.

Shaikhani emphasized that the populace endured an additional financial burden exceeding 2400 billion rupees in 2023 due to heightened electricity and gas prices. The concern persists in 2024, as the government continues this pattern. He urged a reassessment of gas supply priorities, emphasizing the necessity to explore avenues for its augmentation instead.

He stated that the current governmental approach, which involves altering the priorities of gas supply to consumers and escalating tariffs to an unsustainable level, is inherently problematic and runs counter to the essence of the Constitution of Pakistan. He pointed out that while the government aims to curb circular lending through increased gas prices, it simultaneously threatens industrial closures, subsequent employee layoffs, and the emergence of a precarious law and order situation. This potential surge in street crimes and the shutdown of manufacturing units could instil fear of bankruptcy, ultimately impacting the nation’s economy adversely.

President Muhammad Farooq Shaikhani said in any developed nation globally, utilities are not positioned as a source of economic income. This principle is a fundamental component of Pakistan’s constitution and should be accorded top priority by the present government. Unfortunately, the country is witnessing the formulation of economic policies by less-than-committed economists, hindering the possibility of industrial development in Pakistan.

He pointed out that Pakistan holds the 26th position globally in terms of gas reserves and production. Despite having vast reserves, the country annually imports 48,382 million cubic meters of gas. According to government data, there has been an 18% decline in Pakistan’s gas reserves this year. Urgent measures are needed to explore new reserves, supplementing existing fields like Tut Oil Field, Sawan Gas Field, Kadirpur Gas Field, and Qadin Valley Gas Field, through collaboration with domestic and foreign companies. A state of emergency should be declared to ramp up gas production. The Ministry of Petroleum, adopting a short-term policy, can meet the immediate needs of domestic consumers by installing biogas plants. Additionally, stringent efforts are required to eliminate illegal gas connections, especially in Karachi, where, according to the government, 700,000 such connections have been operational for the past decade which is not possible without the collusion of the people of the gas department.

President Farooq Shaikhani of the Chamber appealed to all relevant stakeholders to follow Qatar’s example, emphasizing how the nation utilized its resources for the discovery and production of LNG in 1996. Today, Qatar boasts over 100 billion dollars in LNG exports. Similarly, he advocated for Pakistan to initiate the quest for new reserves by engaging the domestic, foreign, and private sectors collaboratively. In a departure from the prevailing practice of awarding exploration contracts on political grounds, he recommended the inclusion of business representatives from Chambers across Pakistan in these agreements.