Pakistan Economy Watch (PEW), on Sunday, warned another gas bomb to soon hit the public. It added that gas companies, not satisfied by up to 143 per cent hike in the gas tariff during last year, had concerted efforts for a further 145 per cent increase.
PEW President, Dr Murtaza Mughal, predicted another disaster for the masses reeling under inflation if the government did not allow a full revision in prices and decided to increase tariff by only 40 to 50 per cent.
Increasing profits of gas utilities, the move would also result in an increased cost of doing business, closure of many businesses as well as widespread unemployment in the country, he added.
He believed that the monthly gas bill could exceed the monthly rent of a normal house at any time.
Gas bills will soon exceed the rent of an average house: PEW President
Dr Mughal also went on to call OGRA’s exercise to get public opinion before revising gas price, a sheer wastage of time and resources.
The recommendations of stakeholders had never been accepted before, he regretted.
PEW President claimed that gas companies continue to milk masses on the ploy of heavy losses yet their directors had never tried to divest shares.
Despite claiming these losses, the gas distribution companies continue to give dividends to their shareholders, he observed.
Calling gas an important national asset, Dr Mughal believed that no one should be allowed to play with it.
The role of gas distribution companies should be confined to transportation and distribution only, he maintained.
He held the view that these companies were the biggest hurdle in the success of the Liquefied Natural Gas (LNG) project as it continued to cost billions to the public exchequer.
Gas companies have left OGRA almost dysfunctional while the government was also seen taking unilateral decisions bypassing the regulator, the president asserted.
“If a dysfunctional OGRA is in the interest of the government and gas companies, there is no need to spend a hefty amount on this institution and (it) should be closed,” he concluded.
