Ogra recommends 26% hike in gas tariff from Jan 2010

[Naveed Yaseen]

LAHORE (November 17 2009): Chairman Oil and Gas Regulatory Authority (Ogra) Tuqeer Sadiq has recommended 26 percent increase in natural gas tariff from first January 2010. He announced the decision, after public hearing of a petition filed by Sui Northern Gas Pipeline Limited (SNGPL) for increase in gas tariff here on Monday.

Talking to journalists, Rasheed A. Lone, Managing Director SNGPL, said that due to the inflation, increase in petroleum prices and depreciation of Pak rupee against dollar, it was inevitable for SNGPL to increase the tariff at the rate of Rs 69.65 per MMBTU.

Presenting their case before the Ogra, representatives of All Pakistan Textile Mills Association, All Pakistan Textile and Processing Association, Consumers Commission and Domestic Consumers and All Pakistan CNG Association opposed any increase in gas tariff.

They expressed grave concerns over the recommendation of increase in the tariff and rejected it, saying it is unbearable for the consumers, who are already overburden. President All Pakistan Textile Processing Association said that the facts and figures submitted to Authority were not correct. He said dollar has depreciated in the international market, oil prices have stabilised, interest rate and inflation has decreased. In wake of these indicators, it would be quite unjustified to increase the gas tariff, he added.

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