KARACHI: Pakistani industrialists in the country’s commercial hub of Karachi warned on Tuesday they would observe a “no export day” up to three times a week from next month to protest a hike in gas prices, saying it posed a “threat to the survival” of their businesses and could lead to the collapse of the industrial sector.
On Oct. 31, Pakistan announced a sharp increase in the price of natural gas for most households and industry ahead of the cash-strapped country’s first review of a $3 billion International Monetary Fund (IMF) bailout.
Addressing a press conference, officials from the Karachi Chamber of Commerce and Industry (KCCI) along with representatives from the Industrial Town and Value-Added Textile Associations said gas tariffs for industry had increased to about Rs2,600 per Metric Million British Thermal Unit (MMBtu), appealing to the government to bring it down to Rs1,350 per MMBtu, determined as the 100 percent cost of gas by the regulator.
“If the government fails to pay attention to the business community’s demand, we will intensify our protests by displaying protest banners all over the city and observe a ‘no export day’ twice and even thrice a week,” Jawed Bilwani, vice chairman of the ruling Businessmen Group (BMG) at KCCI, warned, saying the new tariffs were a way to “terribly penalize the industrial sector of the country.”
KCCI President Iftikhar Ahmed Sheikh said the government needed to find ways to increase its gas supplies, instead of re-prioritizing existing gas supplies, switching from one set of consumers to the other and raising the tariffs “to completely unabsorbable and unbearable level, which was purely against the spirit of Pakistan’s constitution.”
Sheikh said the gas tariff hike would lead to the closure of industries, trigger lay-offs and cause a huge retrenchment of the labor force which “might result in serious law and order situation, steep rise in street crimes and bankruptcy of manufacturing units.”
Last month, while announcing the hike in gas tariffs, Energy Minister Muhammad Ali said the tariff increase would generate nearly 400 billion rupees ($1.42 billion), adding that the state-run gas sector would from now on face no losses.
Energy sector debt has been the main issue that the IMF has highlighted in tackling the fiscal deficit and it has been recommending measures to deal with it.
Pakistani industries threaten ‘no export’ days thrice a week against sharp hike in gas prices
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Pakistani industries threaten ‘no export’ days thrice a week against sharp hike in gas prices
- On Oct. 31, Pakistan announced hike in natural gas prices for most households and industry ahead of IMF review
- Industry leaders say gas tariffs for industry increased to about Rs2,600 per MMBtu, call for Rs1,350 per MMBtu
Pakistan warns of strict action against hoarding petroleum products amid Iran crisis
- OGRA says reports indicate “certain elements” may attempt to hoard petroleum products for profiteering
- Oil and Gas Regulatory Authority says Pakistan’s petroleum reserves stocks adequate, no need for panic buying
ISLAMABAD: Pakistan’s Oil and Gas Regulatory Authority (OGRA) warned on Thursday that the government will take strict action against anyone found illegally hoarding petroleum products for profiteering, amid fears of a shortage of energy supplies due to the ongoing conflict in the Middle East.
Pakistan fears it may face a shortage of petroleum products as Iran has halted oil and gas exports through the Strait of Hormuz amid its ongoing conflict with the US and Israel. The closure of the strategic waterway between Iran and Oman has disrupted tanker traffic through one of the world’s most important oil chokepoints, from where one-fifth of global oil shipments normally pass through.
Pakistan, which relies heavily on Middle Eastern crude with the majority of its energy imports typically transiting the strait, has formed a government committee to monitor the country’s stock of petroleum products. The committee is also reviewing supply chains, price movements and assessing broader implications for inflation, external accounts, and financial stability due to the crisis.
“It has been emphasized that strict action will be taken against any individual or entity found involved in illegal hoarding or storage of petroleum products at unauthorized locations,” OGRA spokesperson Imran Ghaznavi said in a statement.
“Particularly at places other than duly licensed oil depots and retail outlets of Oil Marketing Companies (OMCs).”
OGRA has repeatedly urged that Pakistan’s stock of petroleum products is adequate and urged the masses not to take part in panic buying. On Wednesday, it allowed oil marketing companies to regulate supplies to their retail outlets so as to discourage hoarding.
The OGRA spokesperson said reports indicate certain elements may attempt to hoard petroleum products for profiteering, adding that provincial chief secretaries have been requested to direct deputy commissioners to conduct inspections in their jurisdictions.
“Any premises found involved in illegal storage of petroleum products will be sealed and action will be taken in accordance with the law,” OGRA warned.
The spokesperson said OGRA was monitoring energy supplies in Pakistan, adding that inspections are being conducted at oil depots and retail outlets to ensure smooth supply of petroleum products.
“The public is advised not to pay attention to rumors and to continue normal consumption patterns, as the petroleum supply situation in the country remains stable,” it added.
Pakistan this week asked Saudi Arabia to help Islamabad secure crude oil supplies through the Red Sea port of Yanbu, as the Strait of Hormuz’s closure threatens its energy supply routes.
Pakistan fears higher global energy prices could lead to consumers paying more for petrol and shelling out more for groceries and other goods, at a time when many are already feeling the impacts of inflation.
