Editorial

Perils of gas tariff stability

Caretaker administration is under enormous pressure to increase gas tariffs

Editorial June 26, 2018

The caretaker administration led by Nasirul Mulk is under enormous pressure to increase gas tariffs and thereby unleash a new wave of inflation in the country. Unfettered by any need to take unpopular measures and avoid bitter pills, the interim government knows it is there for a short time and can’t really be held accountable for its actions, especially in the economic sphere, so long as it carries out its primary task of conducting elections and transfers power to the next democratic set-up. It may just as well as implement the Oil and Gas Regulatory Authority’s recommendation to revise the gas tariff for domestic consumers by a whopping 300 per cent and for the commercial, industrial and power sector by 30 per cent, respectively. This will have quite an impact on the people, passing on a huge burden of Rs160 billion. Together with the June 12^th petrol and diesel price revision, this will result in unsustainable inflation that will make the cost of staple food and other commodities of everyday use dearer. The blow could not have come at a more inopportune time.

After all it has been four years since the government introduced a tariff adjustment and in all that time the PML-N chose to keep the rate artificially stable. For short-term political gain, the PML-N consistently allowed the deficit of gas utilities to multiply. So if consumers writhe in pain from July 1 when the new tariff is announced, we know who to blame. Adding to their misery is the burden of fresh gas schemes which will also be passed on to unsuspecting consumers. Again the PML-N will have the last laugh, knowing well that consumers have to pick the tab for what was an undisguised attempt to garner more votes in the election.So dear consumers use your vote more wisely next time!

Published in The Express Tribune, June 26^th, 2018.

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