The higher rates of Re-gasified Liquid Natural Gas (RLNG) in Punjab as compared to the rates applicable in other three provinces of the country have threatened the survival of local chemical industries for increasing the cost of doing business to an alarming level. The Pakistan Chemical Manufacturers Association (PCMA), in view of the alarming situation, has decided to take a strong stand to stop this unjust treatment with the industries running in Punjab.

The PCMA office-bearers Chairman Zubair F Tufail, Senior Vice Chairman Zafar Mehmood and Vice Chairman Abdul Qayoom in their joint statement on Monday appealed to the Prime Minister of Pakistan in general and the Chief Minister of Punjab in particular to take a serious note of the situation which was badly hampering the industrial operations in the province.

Zubair Tufail said as compared to international and regional economies, the higher cost of gas and additional surcharge on electricity in Punjab had extremely perturbed the local chemical manufacturers. He said that the higher energy costs were not only posing a substantial loss to exchequer but also to livelihood of millions of families associated with the industry. He said that gas in three provinces, ie Sindh, KPK and Balochistan was being supplied at the rate of Rs 600 /MMBTU. But in Punjab the RLNG rates were being charged up to Rs 1300/ MMBTU thus adding more than 100% cost on this head making the operation of chemical units economically unviable, he said, adding that the issue deserved immediate attention of the Chief Minister Punjab as well as the Prime Minister of Pakistan to remove this disparity. He warned that the present uneven tariff, if not addressed properly, would decelerate the growth of industry and exports in Punjab.

FPCCI former president Mian Muhammad Adrees reacting on the high RLNG rates, emphasized to set the gas tariff at Rs 600 across the country. He also urged to waive the electricity surcharge of Rs 3.60 which he termed an undue burden on industries' cost of production. The Association's secretary general Iqbal Kidwai also expressed deep concern over government's indifferent attitude towards the Punjab-based industry which is already facing a serious blow of non-viability due to high cost of doing business.

The supply of high-priced RLNG, if continued, would serve to cripple the industry, he said. He said that a medium scale industrial unit consumes around 15000-20000 MMBTU per month. So the difference comes to more than Rs 100 million which is huge.

Copyright Business Recorder, 2018