Industries Oppose OGRA Gas Hike

Industries Oppose OGRA Gas Hike

Industries Push Back as OGRA Considers Gas Price Hike

ISLAMABAD – The Oil and Gas Regulatory Authority (OGRA) recently held a public hearing on a proposed increase in gas prices, facing strong opposition from representatives of the CNG sector, the textile industry, and other industrial users.

Ghayas Paracha, Chairman of the CNG Association, criticized Sui Northern Gas Pipelines Limited (SNGPL) for passing the cost of its operational inefficiencies onto consumers.

“SNGPL should focus on cutting its own expenses instead of penalizing users,” Paracha said. He noted that while SNGPL initially requested a Rs271 hike, it has now added an extra Rs20 to its demand.

Paracha also highlighted the disparity between gas availability and supply, saying, “Gas is available in sufficient quantities, yet consumers are not receiving adequate supply.”

The proposed hike is still under OGRA’s review.

Industries Face Decade-Old Gas Bills

Earlier this month, SNGPL sent industries additional gas bills for consumption going back ten years, reportedly amounting to billions of rupees. The charges are related to RLNG usage between 2015 and 2022.

Industry representatives argued that all dues for those years have already been settled, and they cannot bear the extra charges. They also pointed out that the RLNG bills are nearly 200% higher than previous amounts, and SNGPL has given just a two-day deadline for payment.

Industrialists warned that without government intervention, these new charges could force factories across the region to shut down.