Industries forced to run on expensive fuels
Power outages increase to 10 to 12 hours a day in city.
FAISALABAD:
Unannounced cut in power supply and gas outages have forced industrialists to switch to more expensive fuels to run their businesses, but that will increase cost of production and make products uncompetitive in the international market, industry players say.
In Faisalabad, electricity load-shedding has risen to 10 to 12 hours a day after suspension of gas supply to industries. To meet the energy requirements, the industrialists are compelled to use diesel-powered generators, but high prices of the fuel are unaffordable, they say.
“Cost of operating diesel generators has increased to Rs20,000 per hour against an electricity bill charging Rs7,000 per hour,” said Shahzad Siddique, Chief Executive Officer of Shahzad Siddique Private Limited, the manufacturers and exporters of apparel and home furnishings. The increasing electricity outages added to the woes of industrialists, who already were protesting against gas suspension, he said.
According to Siddique, use of coal and wood for running plants and boilers has also increased, which has led to an 18 per cent rise in cost of production when compared with the cost of gas usage. Consumption of furnace oil has also become very costly and input cost rises 34 per cent compared to gas charges. “These expensive fuels will ultimately make exports uncompetitive,” he said.
Rana Ghulam Irtaza, Manager of Tauseef Enterprises, the manufacturers and exporters of knitted garments, told The Express Tribune that the industrialists were finding it hard to compete in the international market due to high cost of inputs and asked the government to resolve the energy problem to save the industry.
He also said the suspension of gas supply and prolonged electricity load-shedding had caused a delay in meeting international orders.
Published in The Express Tribune, January 14th, 2012.
Unannounced cut in power supply and gas outages have forced industrialists to switch to more expensive fuels to run their businesses, but that will increase cost of production and make products uncompetitive in the international market, industry players say.
In Faisalabad, electricity load-shedding has risen to 10 to 12 hours a day after suspension of gas supply to industries. To meet the energy requirements, the industrialists are compelled to use diesel-powered generators, but high prices of the fuel are unaffordable, they say.
“Cost of operating diesel generators has increased to Rs20,000 per hour against an electricity bill charging Rs7,000 per hour,” said Shahzad Siddique, Chief Executive Officer of Shahzad Siddique Private Limited, the manufacturers and exporters of apparel and home furnishings. The increasing electricity outages added to the woes of industrialists, who already were protesting against gas suspension, he said.
According to Siddique, use of coal and wood for running plants and boilers has also increased, which has led to an 18 per cent rise in cost of production when compared with the cost of gas usage. Consumption of furnace oil has also become very costly and input cost rises 34 per cent compared to gas charges. “These expensive fuels will ultimately make exports uncompetitive,” he said.
Rana Ghulam Irtaza, Manager of Tauseef Enterprises, the manufacturers and exporters of knitted garments, told The Express Tribune that the industrialists were finding it hard to compete in the international market due to high cost of inputs and asked the government to resolve the energy problem to save the industry.
He also said the suspension of gas supply and prolonged electricity load-shedding had caused a delay in meeting international orders.
Published in The Express Tribune, January 14th, 2012.