The All Pakistan Textile Mills Association (APTMA) South region has voiced concerns over the proposed increase in gas prices by the Sui Southern Gas Company (SSGC) and has called for market deregulation to foster competition and innovation in the gas sector. In response to SSGC’s petition seeking a hike in gas prices for the year 2024-25, the textile millers submitted an intervention to the Oil and Gas Regulatory Authority (Ogra), emphasizing the need for a shift away from guaranteed rates of return and advocating for a more market-driven approach.
The textile millers highlighted that the current administrative consumer pricing system and gas allocation policy contribute to misallocation and inefficient use of resources. They argued that market liberation and deregulation would promote efficiency and prevent undue discretionary power, which can lead to exploitation.
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Furthermore, the association expressed concerns about the impact of high gas tariffs on industrial growth, competitiveness, and national security. They emphasized the need for a balanced approach that considers the interests of both industries and residential consumers. The textile millers called for revising the protected consumer policy to ensure sustainability and transitioning from tariff subsidies to direct cash support for deserving households under the Benazir Income Support Programme (BISP).
Additionally, the association advocated for promoting the use of alternative energy sources such as LPG, RLNG, and solar photovoltaic (PV) materials in the domestic sector. They suggested disconnecting net-metered households with solar PV installations from piped natural gas (PNG) to mitigate cost-shifting issues.
APTMA underscored the importance of pegging industrial tariffs to Ogra’s prescribed price to maintain optimal tariffs and insulate them from power sector inefficiencies. They highlighted the critical role of natural gas in textile manufacturing units for captive generation and process use, emphasizing the need for affordable and reliable energy sources to sustain industrial growth.
