HYDERABAD: The Hydera­bad Chamber of Small Traders and Small Industry (HCSTSI) has strongly opposed a 74pc raise in gas tariff for consumers proposed by the Oil & Gas Regulatory Aut­hority (Ogra), and urged the pri­me minister to reject the summary.

President of the chamber Mohammad Farooq Shaikhani, in a statement issued here on Monday, noted that gas rate was proposed to be increased from $0.5 to $4 per MMBTU which would give effect to further increase in prices of many commodities used by domestic consumers, who were already paying heavily for wheat flour due to its persisting shortage.

He described the federal government’s policies as non-serious, pointing out that the gas company’s circular debt had already risen to Rs1,600bn and government wanted to pass this burden on to domestic and commercial gas consumers which was great injustice.

He said Ogra had sought applicability of this 74pc increase from July 2022 “which was ridiculous” in any society.

He said 25pc of Pakistan’s overall imports pertained to energy sector, adding that coal reserves of Tharparkar could be used for producing gas. He said Pakistan was spending heavy foreign exchange on imports in the energy sector. Around 600MW electricity was being produced from Thar’s coal deposits and if government makes investment in it, this could increase electricity production to 2,000MW and help cut the import bill considerably.

The private sector and foreign companies, he said, had not been included in the oil & gas sector in the last 30 years and that was why gas was being imported at the cost of foreign exchange reserves. He called for serious and honest agreements with these companies to save foreign exchange.

Mr Shaikhani urged the prime minister, federal petroleum minister and Ogra chairman to find some other way to clear gas sector’s circular debt instead of shifting the burden to consumers.

Published in Dawn, January 17th, 2023