KARACHI: Chairman of the Businessmen Group (BMG) Zubair Motiwala and President of the Karachi Chamber of Commerce and Industry (KCCI) Muhammad Jawed Bilwani have strongly opposed the Economic Coordination Committee’s (ECC) recent decision to increase gas tariffs, calling the move irrational and harmful for the industrial sector, particularly small and medium enterprises (SMEs).
In a joint statement on Friday, the business leaders termed the tariff hike unjustified in the current energy market context. They pointed out that global Brent crude prices have fallen and the SNGPL system is facing a surplus of re-gasified liquefied natural gas (RLNG)—an estimated 300 to 400 million cubic feet per day (MMCFD)—which remains unutilised due to high costs and excessive taxes.
They criticised the government’s approach, stating that the real issue lies in inefficient gas supply chain management. While only 80-100 independent power producers (IPPs) use gas, more than 8,000 SMEs depend on it. Increasing gas prices, they warned, will severely impact production, exports, and job creation.
Instead of hiking tariffs, the leaders proposed a 20% reduction in process gas prices to sustain SME operations and support economic stability. They also referenced the Oil and Gas Regulatory Authority’s (OGRA) May 20 decision to reduce Sui Southern Gas Company’s (SSGC) tariff by Rs103.95 per mmBtu, underscoring the feasibility of lower rates based on realistic cost assessments and declining global fuel prices.
The statement concluded with a warning that any further financial burden would push many industries toward collapse, at a time when they are already grappling with steep tax measures introduced in the federal budget.
