People are literally in a gas chamber. The surprising and uncivil manner in which the masses have been pushed to stake an exorbitant gas utility bill merely for the sake of keeping white elephants afloat is gruesome. The Economic Coordination Committee of the Cabinet allowed an unprecedented increase of up to 193% to recover Rs350 billion from consumers. Apart from hike in gas prices for domestic, commercial and CNG users, a new tariff slab for cement manufacturers was also included in the package punch. The simple explanation to come from the government and various stakeholders, in the decision, is that the utility is still cheap as compared to other countries. But that is a misnomer to hide behind exigency, and the prevailing economic turf is set to push the masses to the brink.
The raise to be implemented from November 1 will see fixed monthly charges for domestic protected consumers go up from Rs10 to Rs400. Likewise, non-protected consumers will bear the cost in two slabs. Up to 1.5 hm3, there will be an increase from Rs460 to Rs1,000; and the next surface above 1.5 hm3 from Rs460 to Rs2,000. This will not only make domestic consumers feel the heat in winter, surely not from gas usage but from the inflated bills, but also compel production units to pass on the buck, as is the case in our economy. Last but not least, the decision to turn down a move to completely abolish subsidies for richest exporters and industrialists has raised eyebrows, and made it clear that there are skeletons in the cupboard.
The beneficiaries from the cost-entailing decision, SNGPL and SSGCL, must be ashamed for taking refuge behind hapless masses for overcoming their pseudo-corporate inefficiency and institutional corruption. Much better could have been prescribed by addressing pilferage, opting for austerity and scrapping blue-eyed boys enjoyed perks and privileges, rather than callously putting up a chart of budgetary gimmicks. With electricity and oil prices already in the no-man’s corridor, this new slur will make life and whatever production Pakistan is left with, uncompetitive and bizarre.
Published in The Express Tribune, October 25th, 2023.
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