KARACHI, Dec 22: The trade and industry has criticized Oil and Gas Regulatory Authority (OGRA) decision for raising gas tariffs, and has feared that it will render the industry uncompetitive.

Business and industry leaders talking to Dawn on Thursday said that the increase would suddenly push up the cost of production making their goods uncompetitive on the world markets.

Ogra, on Wednesday, through two separate interim orders relating to tariff schedules of SNGPL and SSGCL had determined an average increase of about 15.87 per cent in domestic gas price and 13.06 per cent for the remaining categories of consumers, including commercial, industrial, CNG, cement, and power but excluding fertilizer. The increase would be effective from January 1, 2006.

“Due to a host of other factors the cost of production has already been on the higher side which is causing a lot of hardships to our exporters in selling their goods on the world markets,” observed Mushtaq Vohra, vice-chairman of All Pakistan Textile Mills Association (Aptma).

He said that it was strange that the government on the one hand was allowing gas connections to mega power projects and on the other it was disconnecting gas supply to the existing industry.

Mr Vohra said that on Tuesday gas supply to more than 100 industrial units in Punjab was disconnected forcing them to stop production. Instead of chalking out gas policy on firm lines by keeping demand and supply factors in view, the government’s sudden actions were creating problems for the industry.

Chairman Pakistan Hosiery Manufacturers Association (PHMA) Javed Bilwani said that the apparel industry could not absorb such a steep rise in one of the basic inputs and feared that majority of small and medium enterprises related with this industry might be closed down.

He said that the government had been assuring the industry of consistency in its policies, but the sudden increase in gas prices had shaken up the confidence of the trade and industry.