ISLAMABAD, Feb 6: Gas consumers from Karachi and the southern region on Thursday opposed a Rs19.71 per thousand cubic feet (MCF) increase in price with effect from July 1, 2002.

In a public hearing conducted by Oil and Gas Regulatory Authority (Ogra) here on Thursday, they expressed their concern on guaranteed rate of return of 17 per cent being offered to the Sui Southern Gas Company, gas theft, losses and massive investment plan amounting to Rs3.8 billion.

They expressed their concern over increase in operating costs, focusing on recent salary hikes of executive and payouts to unionized staff, increased dividend payouts to shareholders and imposition of levies, including gas development surcharge, by the federal government. They criticized the increased cost of gas, quality of service and increasing amount of receivables.

Consumer Rights Commission of Pakistan, Jamshoro Electric Power Company, Mushtaq & Co, Federal B. Area Association of Trade and Industry and Enerman Group participated in the proceedings as interveners.

The SSGC had filed a petition for determination of estimated revenue requirement for 2002-03 on Oct 23, 2002, seeking an increase in the prescribed prices by Rs19.71 per MCF with effect from July 1, 2002, to meet a shortfall of Rs4.99 billion.

An open session was also held for the general public. Ogra will announce its determination by the next week.