LNG Fuel and with fuel everything goes up as the industry needs fuel and electricity to run the machinery. delivery surcharges
Correct. Hike in gas prices add to inflation but subsidising it by taking loads worth billions adds not only to inflation but fiscal imbalance.
The SSGC needs Rs167 billion during the next financial years while the SNGP needs Rs287bn, according to OGRA.
The government either increase gas prices by 186 percent or subsidise it by taking loans. The same loan is then paid by the government (with the people’s name) with interest. Government doesn’t print money to pay but levy taxes to pay the Loan and interest. Which in principle means, people pay loan plus interest.
Moreover, 23 percent of the population use natural gas. The rest are using LPG for a price which is more than 20 times expensive than natural gas. Government has reduced duty on LPG to being the cost down.
And lastly, you were looking for a direction. This is the direction. People has to realise that in order to spare money to invest in Human development, we should live within our coats, use less gas, less water, less sugar and save money to invest. The leaders should tell the truth to the people and educate them about the true cost of the facilities they are using. We are used to subsidies and loads. This situation isn’t tennable.
Austerity is one direction.
Institutionalisation of foreign policy is another one.
Activation of necta is another one.
Agreement on draft resolution for local bodies is another. And so on.