Senate body takes exception to massive increase in gas tariff

ISLAMABAD: The Senate standing committee on the Cabinet Secretariat Wednesday dubbed the massive increase in gas tariff as sheer injustice with masses and asked the Oil and Gas Regulatory Authority (Ogra) to have a look on it and report back.

The government was grilled for the ongoing gas crisis and increase in gas tariff and not passing on enough relief to consumers in terms of fall in prices of petroleum products.

Senator Dr Ashok Kumar regretted that temperature would plunge below zero in Balochistan from December to March, yet his province was deprived of key facility. Senator Robina Khalid said the flawed government policy had resulted in massive problems for consumers.

The panel met here at the Parliament House under its Chairman Senator Talha Mehmood. The meeting was given briefing on Ogra, its performance, Gas Infrastructure Development Cess (GIDC) and gas loadshedding and the government’s new policy on giving new gas connections.

The chairman of the committee noted that there had been significant fall in the rates of petroleum products in the international market, but in Pakistan there were so many taxes imposed on these products and hence no relief was given to public accordingly.

The DG Gas informed the meeting that Pakistan was witnessing an annual shortage of 8 percent in gas availability. He said that presently, Sindh was producing 65 percent gas, followed by Balochistan with 13 percent, Khyber Pakhtunkhwa 10 percent and Punjab 2-3 per cent. He said Balochistan was being supplied just 2 per cent gas.

The forum was also informed that the matter of GIDC was presently in the courts and that the CNG sector was liable to pay Rs6 billion to the government, but there was nothing in the law as to what should be the course of action in case of non-payment of dues by the sector.

The DG Gas explained to the committee that they had sought advice from the Ministry of Law on this particular issue, which had proposed that this should be made part of the act.

The meeting was told that there was 17 percent sales tax on petroleum products and 10-18 per cent duty had also been levied. In response to a question by Senator Talha, the committee was informed that oil companies on their own fixed prices of high octane while the committee termed the levying of massive taxes on high octane totally unjustified.

On the issue identity cards, the committee chairman said the cases of 350 foreigners were sent to Nadra but so far no report had been shared with the panel.