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COVID-19: Industrialists appeal govt to cut gas tariff

MM News Staff by MM News Staff
May 14, 2020
KARACHI: Patron of SITE Association of Industry, Zubair Motiwala has appealed the Prime Minister Imran Khan to cut the gas tariff in view of international oil prices which are at the lowest level now.
In a press statement, he said that amid COVID-19 pandemic, industries remained closed for about two months which are now being re-opened gradually under strict SOPs follow up.
However, as the pandemic hit worldwide, the USA and European countries closed their borders for trade which badly affected exports from Pakistan as the foreign buyers refused to take delivery of ready shipments.
In addition, a large number of export orders have been canceled which also affected Pakistan’s exports, he added.
“Under the current scenario, the exporters are facing severe liquidity crunch as their money has stuck up in ready shipments whose deliveries have been refused by foreign buyers. As such, there is a need to support exporting industries in the wake of current economic condition”, he pointed out.
Patron of SITE Association further said that OGRA calculated gas price at the rate of 60.7 dollars per barrel of Brent crude which has now lowered to 25 dollars and a cut of nearly 40 % in gas prices is possible now. In addition, RLNG price has reduced below 2 dollars.
Other countries have already passed on the benefits of these reductions to their industries which Pakistan must follow. Zubair Motiwala appealed Prime Minister Imran Khan to consider lowering of gas tariff & RLNG rates so that the cost of production of exporting industries is reduced and exports get a boost.
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