Gas Prices in Pakistan: Reaction From Industrial Leaders Over the increase in prices of the in Pakistan.
Prime Minister Shehbaz Sharif has expressed his dissatisfaction with the recent increase in prices, calling for immediate action from the Ministry of Energy.
According to reports, Sharif has assigned the ministry a wide range of tasks to fix the situation as soon as possible.
According to sources, Prime Minister Sharif has ordered the completion of 16 tasks within one to three months, as well as the submission of a forensic audit report on the price increase within one month.
Expressing his discontent with the price hike, Sharif has underlined the importance of a thorough assessment of infrastructure, incidents of theft, and performance shortcomings, with a three-month deadline for submitting a report on these issues.
Furthermore, the Prime Minister has called for the urgent formation of an inter-ministerial commission to oversee the Iran-Pakistan gas pipeline project.
To make the most use of extra electricity, the Prime Minister has directed that a plan for building new industrial zones be presented within one month.
He has also instructed the Power and Petroleum Division to develop a solution for revolving credit within two weeks.
Amidst these directions, Sharif has underlined the need of fixing concerns such as infrastructure, theft, and failure to perform, setting a two-week deadline for submitting a thorough report.
Gas Price Projection and Demands for Fiscal 2024-25
The requester estimated the average desired price for the fiscal year 2024-25 in the natural gas business at Rs2,276.66 per MMBTU, demanding an increase of Rs475.95/MMBTU over the current price.
The petitioner requested the previous year’s shortfall at Rs2,646.19/MMBTU for FY 2024-25. It also requires an overall average prescribed price of Rs4,446.89/MMBTU for FY 2024-25.
Aside from the foregoing, the petitioner argues that RLNG’s service cost is Rs325.08 per MMBTU for FY 2024-25. The authority also plans to hold another open discussion in Peshawar on March 27.
Ogra Chairman Masroor Ahmad Khan Statement about Gas Pricing
The public hearing was also open to all categories of gas consumers, as shown by their monthly payments.
“We will make a decision based on the problems faced by the general public and the SNGPL, as the impression that increasing tariffs by holding public hearings is not supported by facts,” Ogra Chairman Masroor Ahmad Khan stated on the occasion.
Public Hearing Plans and Public Involvement in Gas Pricing Decisions
However, consumers encouraged the government not to raise gas tariffs in response to IMF pressure. “Since we see it as a move trying to crush the poor economically, we will fight it by all means,” threatened an audience member.
Kashif Anwar, President of the Lahore Chamber of Commerce and Industry (LCCI), expressed concerns about the negative impact of rising gas costs on various companies.
Anwar, along with Vice President Adnan Khalid Butt, met with leaders from the paper, board, packaging, food, and confectionery industries to discuss the serious issue.
During the discussion, industry delegates raised concern about the frequent and substantial increases in gasoline prices, noting considerable losses as a result.
Industrial Owners Speak Against Gas price in Pakistan
Rising gas prices have prompted entrepreneurs to disconnect commercial gas meters to alleviate financial burdens. Anwar emphasized the gravity of the situation, urging the government to recognize the industry’s distress and take urgent action to lower gas prices.
A spokesman of the Lahore Restaurant Association lambasted the government for pressuring businesses to decrease food prices despite the growing cost of doing business.
“When energy prices rise, we are forced to raise food prices.
Despite this, the government pressures us not to do so,” he said, urging the government to avoid raising the gas tariff, which is already expensive.
According to a representative of the All Pakistan Textile Mills Association, the unsustainable gas pricing has already resulted in the closure of numerous factories, stores, and commercial sites in Punjab and other regions of the country.
Earlier, SNGPL’s managing director, Amir Tufail, backed the company’s petition, claiming that the proposed gas prices were necessary to cover expenses like as gas costs and development programs.
According to Ogra, a public hearing was held on SNGPL’s petition to determine its expected income requirements/prescribed rates for fiscal year 2024-25.
Conclusion
The broad displeasure with rising gas costs, coupled with calls for prompt action from industry executives and government officials, highlights the critical need for comprehensive steps to reduce financial pressures and strengthen the economy.
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