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Illegal fertiliser cross-subsidies

2024-07-01
THE All Pakistan Textile Mills Association (Aptma) condemns the Ministry of Energy (Petroleum Division) and the Oil and Gas Regulatory Authority`s (Ogra) `illegal imposition of Rs50 billion in cross subsidies to the fertiliser sector in ring-fenced RLNG tariffs from June 2024 onwards`, as per a press release. The association said that the subsidies will have a destructive impact on the country`s exports, employment, and overall economy.

The association opined that the decision violates Articles 6 and 7 of the Ogra Ordinance 2002, which were designed to protect consumer interests and minimise economic distortions.

According to Aptma, this directive imposes an unjust financial burden on RLNG consumers on the SNGPL network, who are already burdened with double the gas tariffs compared to regional competitors.

The association urged the government and regulator to recognise the severe implications of the current policy and reverse this decision immediately. •