PAAPAM wants smooth power, gas supply to industry at competitive rates

Karachi, June 07, 2022: Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), calling for smooth and uninterrupted power and gas supply to the industry at competitive rates of OGRA, as it is in a dire financial crisis due to the non-supply of electricity from national grid while they are being provided re-gasified liquefied natural gas (RLNG) at very exorbitant rates, which is discrimination and injustice.

PAAPAM senior vice chairman Abdul Rehman Aizaz appealed the government to direct Sui Southern Gas Company to provide KE at least 130 million cubic feet per day (mmcfd) of natural gas at the tariff of Rs.857/mmbtu as decided by the Oil and Gas Regulatory Authority (OGRA). He said that the existing gas being supplied to KE, which is 100 mmcfd at RLNG rate, should be charged at natural gas tariff as per High Court order and also decided by OGRA at the rate of Rs.857/MMBTU.

“We request you to immediately notify SSGC to start billing KE at OGRA approved rates of indigenous gas tariffs, saving the domestic and industrial consumers of Karachi from discrimination and injustice”

He also asked the government to rationalize fuel charges adjustment in electricity bills to safeguard the interest of 30 million residents and 40,000 industries of Karachi. He added that residents and industry, here, are in a dire financial crisis due to non-supply of electricity from national grid and supply of RLNG at Rs.4700/mmbtu to KE, resulting higher cost of electricity production and slapping the consumers with higher FSA and unit cost Rs.40/.

“It is impossible for 40,000 industries of city including small and medium enterprises to sustain their productivity at Rs40/ unit eventually industry will die, resulting in downfall of Pakistan economy and bringing bad political reputation to current government.”

Currently, 99% of fuel supply to KE is RLNG. This violates the Gas Load Management Policy approved by the Cabinet which prioritizes public interest, decisions of the Cabinet Committee on Energy, and Honorable Sindh High Court Decision mandating provision of 190 mmcfd to KE with 130 mmcfd of Natural Gas at Natural Gas rates, he added

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