Tuesday February 07, 2023

Proposed increase in gas price to trigger inflation

December 19, 2019

Islamabad: The business community reject another gas price hike that is on the cards as it will make life difficult for the masses, a business leader said Wednesday.

The decision to increase the gas price up to 214 per cent will open floodgates for inflation, which will take a toll on people, and the economy, therefore, the Prime Minister Imran Khan should reject the decision, he added.

Settling gas sector circular debt of Rs181 billion by burdening the masses is unjustified and it can be termed as a mini-budget, said Shahid Rasheed Butt former president ICCI. He said that gas tariff hike would trigger inflation and increase poverty in the country as it will also increase tariff of electricity, make production costly and hit exports.

The business leader noted that gas is a very important part of Pakistan’s energy mix, therefore, a hike in the tariff will hit almost everyone. The gas prices for tandoor will go up by 245 per cent while gas for the CNG sector is to get 31 per cent more expensive, the fertiliser sector will see by 153 per cent increase and IPPs, power stations and cement sector will face a 24 per cent hike.

He said that losses of the gas companies are running into billions of rupees due to mismanagement, incompetence and corruption that is shielded through frequent tariff hikes, which is not a sustainable solution.