January 21, 2007	Sunday	Muharram 01, 1428

KARACHI, Jan 20: The delay on the part of the government to issue notification on successive decisions taken by the Oil and Gas Regulatory Authority (Ogra) for downward revision of gas prices by around 10 per cent for industrial consumers was not only having a crippling effect on industry’s viability, but was also badly damaging government-business relations.

It is being generally alleged by trade and industry that when Ogra or for that matter any regulatory body suggests upward revision in tariffs, the government wastes no time in announcing and issuing notifications, but in case when such bodies suggest downward revisions, long delays are made and no government functionary takes the matter seriously.

The trade and industry feels that if the government does not do away with such a ‘selfish approach’ where it only wants to secure its benefits, this will erode the confidence of not only local but also foreign investors, as nobody would like to risk his investment in uncertain environments.

The Ogra has, so far, made eight decisions which were mostly for upward revision in gas tariffs and they were immediately rectified and respected by the government by issuing notifications for their implementation in a very short time.

However, the trade and industry feels bad that when the same regulatory body has announced downward revisions in gas tariffs for industrial consumers, the government was using delaying tactics.

It is almost seven months when Ogra first decided on Sept 27, 2006, to make downward revision in gas prices by around 10 per cent, from Rs264.54 to Rs238.42 per MMBTU.

The decision of the regulatory body was in retrospective effect i.e. from July 1, 2006, and under rules, any decision has to be notified within 40 days.

However, even after the lapse of this period, the government did not issue any notification, which shocked the industrial consumers who had, so far, been experiencing quick action from the government side in announcing and issuing notifications for implementation of Ogra decisions.

In a decision of Nov 21, 2006, the Ogra again made a downward revision in gas tariff for industrial consumers by around 10 per cent i.e. from Rs238.42 to Rs238.22 per MMBTU with the last date ending on Jan 1, 2007, for its implementation. Since earlier decision was not notified by the government, it carried an impact of a cut of Re0.20 over the previous decision of Sept 27, 2006.

Surprisingly, the government remained indifferent to the issue and at all official meetings, the trade and industry kept raising the issue even to the highest level but of no avail.

This totally perturbed the businessmen who feel at loss to whom they should now approach and seek justice and get due relief.

Surprisingly, there had been many meetings with regard to ‘high cost of doing business’ in the country and gas is also part of the input in the manufacturing sector, but still the government had been hitting the bush around and did not issue a notification for bringing into effect Ogra decision which could have given some relief to trade and industry, business leaders lamented.

It is highly intriguing that the Ogra on Jan 8, 2007, made yet another decision for a cut in gas tariff at Rs238.22 which were last made in Nov 21, 2006, ruling.

However, the government has, so far, taken no notice of all the three decisions taken by the regulatory body for cutting down gas tariffs and one wonders as to who will convince the ruling elite to respect the sanctity of regulatory bodies, observed Nisar Shekhani, chairman, fuel, power and gas sub-committee, SITE Association of Industry.