FPCCI serious concern on increasing gas tariff.

KARACHI, October 29, 2009 (Frontier Star): FPCCI and the entire business community have strongly condemned the action being taken by Oil and Gas Regulatory Authority (OGRA) to increase 26 percent gas tariff from January 2010 on the request of SSGC. Mr. Zakaria Usman, Vice President FPCCI while commenting on this illogical act by the OGRA said that the entire trade and industry has rejected any such move to an abnormal increase of 26 percent which would crush the industry that is already facing severe crises. He said that industrial sector has already suffered a loss of Rs 200 billion due to power load shedding alone and now the increase in gas tariff would push the country backward, leaving all the economic targets failed and the economy to further face turmoil. He said that business community was awaiting reduction in gas tariff as per government's statement but OGRA has unilaterally decided to increase tariff to an exorbitant level which is in no way affordable to the industry. He further added that due to unjustified and motiveless policies of OGRA and NEPRA the cost of doing business has gone high and in consequence various industrial units are working under-capacity and some are closed-down. He said this increase would have a killing effect on the industries that are gas dependant. This will cause decline in trade & Commerce and will also lead to massive unemployment. Mr. Zakaria has expressed grief that in the past, gas prices of various fields in the country were linked to oil prices in the international market. In July 2008, oil prices rose to $147 per barrel which faced a dropdown in August and prices were $73 per barrel, and presently the dollar parity is around $75 per barrel. Now that the prices of oil have faced downward revision, the gas companies in spite of decreasing the tariffs, are crying for further increase. In this connection business community strongly condemns this hike in gas tariff and hope that the concerned authorities and the ministry to again think before its too late, Mr. Zakaria added.

(THROUGH ASIA PULSE)