Business Community Alarmed by Gas Price Increase

Business Community Alarmed by Gas Price Increase

The recent hit in gas prices has led industrialists and company owners to express their worries, resulting in an Oil and Gas Regulatory Authority (OGRA) meeting to address a petition filed by Sui Northern Gas.
Expressing worry, industrialists fear that higher gas prices will lead to higher production costs, potentially impacting international orders. They point out that neighboring countries like India and Bangladesh offer more favorable utility rates to exporters.

Moreover, the spike in utility prices has placed significant financial strain on businesses, leading to the closure of numerous factories due to mounting bills. Sheikh Ayub has emphasized the urgent need for field staff mobilization to combat gas theft, which exacerbates resource scarcity.

Also Read: Pakistan Oilfields Limited (POL) Finds Oil And Gas Reserves In Punjab!

Chaudhry Mohammad Farooq, Chairman of the Restaurants and Hotels Association, has criticized the allocation of gas resources, particularly the prioritization of urban areas over forests. He questioned the justification of granting additional gas connections amidst shortages, pointing out the closure of over 11,000 restaurants, tandoors, and hotels as a direct consequence of the price hike.

Farooq also raised concerns about the equitable distribution of gas, noting discrepancies between supply and consumer needs. He highlighted the drastic increase in domestic consumers’ bills, which have soared from a few thousand to as much as Rs100,000, further exacerbating the challenges faced by businesses.

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