President Karachi Chamber of Commerce and Industry (KCCI) Iftikhar Ahmed Sheikh has said that the caretaker setup has surpassed the elected Governments in terms of raising industrial gas tariff which has been raised by 118 percent since August 2023 from Rs1100 per MMBtu to Rs 2400 per MMBtu whereas further 40 percent addition of RLNG cost has taken gas tariff to a whopping and historically highest level of Rs 3200 per MMBtu which indicates an overall hike of 191 percent.
In a statement issued, President KCCI informed that Since October 2020, the gas tariff, which stood at Rs819 per MMBtu, has constantly been raised and within a year, it has been increased to Rs2400 per MMBtu whereas from January 2023, 40 percent RLNG cost has also been added, taking industrial tariff to a totally unbearable and unabsorbable Rs3200 per MMBtu. He said that it was a matter of grave concerns that the Petroleum Division, which was in sheer disagreement with industries of Karachi at stakeholders’ meeting held with Prime Minister last month, has issued a notification to SSGCL to charge further up to 40 percent for RLNG to industrial gas supply. “It appears to be a clear-cut indication that someone intends to close/ shutdown all the industries in Karachi.
The recurring exorbitant increases in the energy tariffs (gas and power) under IMF dictates and other costly industrial inputs due to mammoth rupee-dollar parity and deprival of level playing field to compete globally have brought the industries at the verge of closure”, he warned, adding that the export-oriented industries in particular and import-substitute industries in general were confronting greatest challenges which have never been witnessed in the history of Pakistan where the industrial and export productions have come to a standstill due to unbearable cost of manufacturing.
