As ever more proof Pakistan is shining the governments announced another price hike.
The increase of almost ten per cent in the natural gas tariff for domestic, industrial and commercial users, effective retrospectively from July 1, doesn’t look very good for consumers. According to a notification of the Oil and Gas Regulatory Authority (Ogra), the tariff for Wapda, KESC power stations and other electricity companies has been increased by 15.9 per cent while one Wapda power station in Faisalabad has been exempted. This increase is sure to add to the misery of the ordinary consumer because it may well lead to a rise in electricity prices as well at some time in the near future. In addition to that, the millions of motor vehicle owners who own cars that run on CNG can also expect the price of this relatively cheaper fuel to rise further (it was raised a couple of months ago). The reason for the hike is thought to be an increase in the international price of oil. However, according to one report, both Sui Southern and Sui Northern will approximately earn around Rs10 billion extra each because of the higher tariff. But who will explain this all to the ordinary consumer, who will now have to pay more for a very basic utility. Besides, the natural gas is produced domestically and hence consumers who do not have a good understanding of economics are unlikely to find any rationale for the increase.