Proposed gas tariff hike

The government intends to jack up gas tariff by 200 hundred percent in the next fiscal year for which four slabs have been suggested for domestic consumers. Approval for the second dose of increase in gas tariff will be taken from the economic coordination committee of the cabinet. Earlier the gas tariff was enhanced by 143 percent during the current fiscal year. Increase in gas price for the domestic consumers will not substantially reduce the losses accrued by the gas companies due large scale pilferage by industrial and commercial consumers and filling the fiscal hole. Hence, gas tariff for the commercial and industrial consumers has to be enhanced as well.

The campaign launched against gas pilferage is entirely focused on domestic and small commercial consumers, while letting big fish off the hook. The strategy of disconnecting gas supply to domestic consumers in the gas producing district had a negligible impact on bringing down losses of SNGPL.

Big industrial units have installed captive power plants and if gas tariff for the industrial sector is enhanced it will abnormally push up the production cost and will wipe whatever left comparative advantage of finished goods in the international market. It is time to effectively tackle the menace of gas pilferage in the industrial and commercial sectors.