This was stated by Ogra Vice Chairman Jawaid Inam after the conclusion of public hearing on the review petition of Sui Southern Gas Company Ltd for increase in gas prices by Rs 23.15 per mmcf.
Member Oil Ogra Rashid Farooq and Member Finance Ogra M H Asif, besides senior officials of SSGC and representatives of KCCI, Site Association and other trade bodies were also present on the occasion.
At the outset, Jawaid Inam said that SSGC had sought an increase in gas price due to rise in cost of gas supplies by gas exploration companies to SSGC.
He said that Ogra had already issued an interim order allowing increase in gas prices at a rate of Rs 23.15 per mmcf, effective from January 1, 2006.
However, the Ogra will accommodate the views of all stakeholders in its recommendation to the government after a comprehensive scrutiny of the facts and data provided by the petitioner as well as the respondents, he added.
Jawaid Inam said that Ogra has set up a complaint cell to receive complaints from public as well as businessmen and industrialists against gas companies about billing as well as gas pressure. "Whenever, we receive complaints from consumers, we call the company as well as respondent to remove complaints," he added.
Earlier, SSGC executives in their presentation said that the cost of gas supplied by the exploration companies has risen considerably and the company was left with no option, except to raise gas prices on immediate basis.
FATAL FOR INDUSTRY: The intervener and industrialist Zubair Motiwala, while speaking on behalf of Karachi Chamber of Commerce and Industry, said that the increase in gas price will be fatal for the industry, especially the exporters.
He said that the government had allowed zero-rated facility to textile exporters to ensure that they remain competitive in the international market. This increase, if allowed, will jeopardise all the efforts of the government, he noted.
Former chairman of Site Association Nisar Sheikhani strongly opposed the request saying that it was the habit of the company to seek rise in gas prices after short intervals.
Representative from CNG association and knitwear exporters Junaid Makda termed the SSGC request unwarranted and said 'it will be like punishment to the industry, which is already struggling from other rising costs.'
He urged the Ogra to defer the request for the time being till such time the industry survived from other shocks.
Representative of the CNG dealers Mohammad Hasan urged Ogra not to pay heed to the request of SSGC as it will not only hurt natural gas and CNG consumers but also ruin investment of CNG dealers.
He also urged Ogra to defer the request for some time.