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Why not deregularise gas sales? OGRA

Sunday, Dec 9th, 2012 01:59 PM
in Editorial

EVERY year two natural gas distribution companies owned by the federal government are submitting their petition to Oil and Gas Regulatory Authority (Ogra) for permission to increase the prices of gas to meet their requirement for a final year.

Ogra is holding a public hearing in which consumer rights protection NGO participate.

After meeting this formality, the increase in gas prices is allowed. I fail to understand why the government has to fix sales prices of gas, petrol, diesel and furnace oil.

Why is it not deregulating oil and gas sector?

Ogra should fix the tariff of gas and oil products on the basis of btu value, i.e., equating calorific value of each fuel, gas, diesel, furnace oil and petrol and allow gas and oil marketing companies to have their sales prices.

Ogra should let the user pay the international prices for domestic gas with no government subsidy.

It is strange that, on the one hand, the government is imposing 50 per cent taxes on fuel and, on the other, it is providing subsidy.

Only 10 per cent of sales tax should be imposed on fuel by adopting this long-term policy so that the chaos in oil and gas sectors being faced by the country can be controlled.

S.T. HUSSAIN           
Lahore

Original Post Link Dawn Site Letter to the Editor

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