SCCI opposes proposed policy of National Weighted Average Cost of Gas

SCCI opposes proposed policy of National Weighted Average Cost of Gas

F.P. Report

PESHAWAR: President, Sarhad Chamber of Commerce and Industry Hasnain Khurshid Ahmad has strongly opposed the government plan to introduce proposed policy of National Weighted Average Cost of Gas through legislation in parliament, termed that the move would be a clear violation of relevant article 158-A, of the constitution of the country and tantamount to usurp rights of natural resources-rich and gas producing provinces.
The SCCI chief urged the government to review the proposed policy and to ensure protection of constitutional rights and avoid putting additional burden on provinces, having abundant natural resources.
Hasnain Khurshid while talking to a delegation of industrialists here on here on Wednesday informed that the federal government is planning to pass a bill from the parliament introducing an average national basket prices for natural gas i.e Weighted Average Cost of Gas (WACOG) by moving away from ring-fenced pricing and supply of local gas and imported liquefied natural gas (LNG) to various consumer categories meaning thereby to create appetite for RLNG as rationalization of consumer gas prices in the country.
Participants of the meeting told that government is introducing a bill in the parliament for weighted average cost of gas wherein all the prices will be based on average cost of gas i.e. average cost of natural gas plus imported gas, which is against the Constitution of Pakistan and also not in the interest net gas producing provinces as from this bill only province of Punjab who is the most gas consuming province with no natural gas resources, will be benefited.
Hasnain Khurshid said the proposed policy is tantamount to usurping constitutional rights of natural gas producing provinces, which couldn’t accept them at any cost, vowing that they will resist and take aggressive steps, if the WACOG was implemented.
The SCCI president quoted under Article 158 of the Constitution of the Islamic Republic of Pakistan which clearly states that “the Province in which a well-head of natural gas is situated shall have precedence over other parts of Pakistan in meeting the requirements from that well head.”
As per the Article 158, Mr Khurshid said it is the ultimate right of the province to receive the gas at a cheaper rate as the gas producing provinces do not need any RLNG for their use because they are self-sufficient and net producers.
The SCCI chief further added that they do not agree with the Government’s policy of WACOG. He urged the authorities to look into the matter and protect the rights of the surplus gas producing provinces.

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