OGRA reconsiders plea to increase gas prices
April 17, 2008 - Pakistan
Oil and Gas Regulation Authority (OGRA) will give its final discretion to the Government about the petition of Sui Southern Gas Company (SSGC) for gas price increase.
The statement was made by the Mr Munir Ahmad, Chairman OGRA at the conclusion of public hearing of SSGC on April 16.
, KESC and various other stakeholders boycotted the hearing on scores that OGRA reflected disregard as to crucial issues raised about increasing gas prices.
SSGC explained reasons for demanding an increase in prices by reiterating that the cost of gas to be paid to the producers has also increased.
However, the cost of gas is invariably linked to the international prices of crude oil and therefore a hike in prices of gas is bound to increase the prices of oil and all the other commodities at the same pace.
Textile industry in particular will face great difficulties since the cost of production is already way too high for this sector. This in turn would bring a drop in the overall exports of the segment thereby reducing revenues.
Experts have suggested that gas prices are already high and a further increase in prices is bound to have an adverse effect on the economic and financial condition of the consumers.
One thing is therefore very clear that an increase in gas price to an unreasonable extent will have devastating effect on the lives of ordinary consumers who may not be able to bear such immoderate costs.