Massive hike in tariff of natural gas is likely to add to the woes and worries of already over-burdened consumers as state-owned gas utilities - SNGPL & SSGCL - have sought up to Rs47.73/mmbtu sky high increase in gas tariff for next financial year 2013-14.

Background interviews and discussions with economic pundits assumed it might contribute to increase the notoriety graph of PPP government, which is about to complete its constitutional tenure. Since the incumbent government has left no stone unturned in sweeping away what the masses left with through price hike in essential commodities, increase in gas and power tariff with each passing day so the masses in general would take the proposed massive raise in company’s gas tariff as a ‘farewell gift’ of outgoing ruling coalition if it gets the nod of regulator (OGRA).

They were found unanimous that the already hard pressed consumers will bear the brunt of both utilities - SNGPL and SSGCL - as apparently no let-up surfaced so far to reduce their woes resultantly increasing tariff hike would play with their deteriorated economy. This hike would further trouble the masses that are already facing the skyrocketing inflation. They were of the view that the incumbent government must immediately initiate strict and serious inquiry about the gas theft of both the utilities, which is against the set targets of the Ogra for both SNGPL and SSGCL. They also advised the cash-starved coalition government to first put its own house in order before passing on this hike to the already over-burdened consumers.

Sources aware of the matter informed that the Ogra has issued a hearing schedule for proposed gigantic hike in gas tariff of both gas companies. They said there would be a hearing on 3rd April in Lahore over the petition submitted by SNGPL while in Karachi a hearing is scheduled on April 10, 2013 over the request of SSGCL. In their respective petitions to the regulatory authority, SNGPL has sought a record high Rs47.73/mmbtu increase while SSGCL sought Rs 43/mmbtu for next fiscal year, sources added.

“Since the beleaguered PPP government has many times jacked up POL product prices and power tariff during its tenure so proposed heavy surge in gas prices would further disturb the monthly budgets of consumers in particular while common public in general, said an official at finance ministry.

Sources also said that the SNGPL will sale the natural gas worth Rs234 billion during next financial year 2013-14. Similarly, the company (SNGPL) has submitted its request to collect heavy Rs12 billion from consumers under head 7 per cent of stolen gas. The total earning of the gas company (SNGPL) will stand at Rs256 billion, 76 crore and 90lac while total expenditures including price of gas of the company will be Rs269 billion and 81crore.

However, profit of the gas utility under the formula will be Rs15 billion and 25crore during upcoming fiscal year. On the other hand, a state-owned gas utility, SSGCL, will sale natural gas worth Rs152 billion while it has sought Rs10 billion collection from the consumers under the head 7 per cent Unaccounted for Gas (UfG). While the total earning of the company will be at Rs181 billion, 29crore and 40lac and total expenses including price of gas will stood at Rs176 billion and 12crore. And, SSGCL will earn a profit of Rs12 billion and 66crore during next fiscal year 2013-14.

It merits mentioning here that this proposed surge if approved would not only directly affect the poor consumers but its application to all categories (CNG and fertilizer sectors included) means that the masses will have to pay more for many other commodities. More, at a time when the energy sector in the country is spinning into acute gas crisis, the expected decision to further jack up gas prices for all sectors would play havoc with the consumers, who are already perturbed over the routine increase in the commodity prices coupled with artificial shortage of essential commodities

Before the end of constitutional tenure of incumbent PPP government, this new proposed hike in gas tariff would slap the general public, who would be soon affected after Ogras notification.