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Sunday, April 21, 2024

APTMA demands the deregulation of the gas market

As the Sui Southern Gas Company (SSGC) pushes for a substantial increase in gas prices, the All Pakistan Textile Mills Association (APTMA) South region has advocated for market deregulation to foster competition and innovation in the gas sector.

SSGC aims for a significant Rs274.40 per mmbtu increase in gas prices, effective from July 1, to meet a revenue target of Rs359 billion, including a Rs25 billion return on assets component.

APTMA South has intervened in response to SSGC’s petition, emphasizing the need for market liberation and deregulation. They propose shifting away from guaranteed rates of return, advocating tying asset expansion and investments to economic viability and market dynamics.

Amid gas price hikes and increasing electricity tariffs, firms face a lack of financially viable energy sources for manufacturing and international competitiveness. APTMA South underscores that market deregulation can address inefficiencies and misallocations arising from the current pricing and allocation policies.

The call for gas market deregulation by APTMA South reflects the textile industry’s need for a level playing field and enhanced efficiency in resource utilization. As stakeholders await Ogra’s decision on the price hike proposal, the outcome of the public hearing will likely have significant implications for the industry’s operational costs and competitiveness. In advocating for market liberation and a shift towards a more competitive pricing framework, APTMA South seeks to create an environment conducive to sustainable growth and innovation in the textile sector.

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