The Chairman of the Oil and Gas Regulatory Authority (OGRA) has stated that if the tariff is not increased, gas exploration activities will come to a halt.
In Ogra, a hearing was held on the request for a 137 percent increase in gas prices, in which the business community described the further increase as tantamount to closing down the business.
The business community said that it is unreasonable not to increase the tariff of fertilizer, the future increase should be passed on to the fertilizer and other remaining consumers.
During the hearing, Sui Southern Gas Company (SSGC) officials stated that 72% of gas meters in Balochistan are tampered. This tampering is contributing to losses in Balochistan and is causing an increase in tariffs for domestic consumers of RLNG (Re-gasified Liquefied Natural Gas).
ESGC officials said that the companies working in the gas sector have to make payments of 300 billion, so if the tariff does not increase, it will become difficult for the companies to run their operations.
At this occasion, the Chairman of OGRA stated that he will present the concerns of the trader community before the federal government. The depreciation of the rupee is also a factor contributing to the increase in tariffs. Gas production is already decreasing by 7 to 8 percent annually. If the tariff is not increased, gas exploration activities will come to a halt.
Meanwhile, the Hotels Association protested outside the Ogra Building against the sudden increase in gas prices, in which hundreds of protesters participated.
The protesters demanded immediate withdrawal of gas price hike and also raised slogans against Ogra and the government.
