KATI opposes Ogra’s proposal for gas tariff hike

KARACHI: President of the Korangi Association of Trade and Industry (KATI) Junaid Naqi has strongly opposed the Oil and Gas Regulatory Authority’s (Ogra) recommendation to increase gas tariffs for Sui Southern Gas Company (SSGC).

He warned that the proposal would put undue pressure on industries and the public, who are already grappling with rising inflation and energy costs. Naqi argued that the current economic conditions do not justify such an increase, pointing out that the move ignores recent reductions in unaccounted-for gas (UFG) losses and interest rates. He said that instead of proposing a price hike, Ogra should have recommended a reduction in gas tariffs, which is crucial to maintaining the competitiveness of local industries in global markets and supporting exports.

The KATI president reminded the government of its promises to support export-oriented industries, highlighting that Ogra’s proposal contradicts these commitments. He urged Prime Minister Shehbaz Sharif to instruct Ogra to revise its recommendations and implement policies that benefit both ordinary Pakistanis and the industrial sector.

Naqi also highlighted inefficiencies, such as unresolved issues of gas theft and system improvements, as major contributors to the financial challenges faced by gas distribution companies. He called on the government to address these underlying problems rather than shifting the financial burden onto consumers.

Warned Naqi, if the tariff hike is implemented, industries reliant on gas-fired captive power plants could face severe setbacks, including lost investments and increased uncertainty in the business environment.The KATI president urged the prime minister to reject the proposal outright, adding that any additional financial strain would further hinder the country’s economic recovery.