IN a disheartening development for gas consumers nationwide, the Oil and Gas Regulatory Authority (OGRA) has dealt a substantial blow by increasing the gas tariffs for both Sui Northern and Sui Southern. The latest hike, with an increment of 35.13 percent for Sui Northern and 8.57 percent for Sui Southern, is set to be applied retrospectively from January 1, 2024. This decision comes as a response to the pressing need to bridge the Rs98 billion shortfall until June 30, 2024, adding to the burdens of consumers already grappling with exorbitant and unaffordable gas bills.
This move marks the second gas price hike within the current financial year. The caretaker government had previously implemented a significant increase of up to 193 percent from November 1, 2023, projecting an estimated revenue tariff of Rs980 billion for FY24.The repercussions of this gas price escalation are felt acutely by both domestic and industrial consumers. Already burdened by soaring gas and electricity bills, the common man finds it increasingly challenging to cope with the escalating costs. The latest hike threatens to further exacerbate their financial woes, pushing gas bills further beyond the reach of the low and middle class. Furthermore, the surge in gas prices contributes to the prevailing high inflation rate, compounding the economic challenges faced by the populace. The impact on industrial consumers is equally significant as increased production costs translate into higher prices for goods and services, thereby contributing to inflationary trends. Addressing the issue of circular debt in the gas sector which currently stands at 1,250 billion rupees is imperative but the approach should prioritize the elimination of inefficiencies and losses in the system. The government must exercise caution and be mindful of the real and immediate impact of gas price hike on the people. The substantial increase in gas tariffs implemented in November 2023 has already strained the financial capacities of consumers. Implementing further hikes without addressing the underlying issues risks worsening the economic plight of the people. We, therefore, will suggest the government not to give green signal for the gas price hike.
