Rise in gas and power tariff
It is not unusual for governments to adjust the prices of goods and services, but when such regulatory arrangements disregard the normal market forces it becomes an aberration. The hike in prices of gas and power to be effective from September 1, in our estimation defies logic. In the first place the decision to raise prices was not that of the energy regulatory commission's but rather imposed from the top. In doing that the commission has overlooked the problem of the consumers, its prime responsibility.
During the last six years oil prices has been raised on six occasions and gas price has increased twice during the same period. And we are baffled by the quantum jump of 50 percent in respect of gas burners. We are not aware that the gas sector is enduring losses as of now that would necessitate such a gross upward adjustment?
The spike in oil prices is even more baffling, particularly in view of the fact that the international price of oil has been more than halved in the last one year. Admittedly, only one third of the electricity generated in the country is oil fired, and the government is still giving subsidy to the state owned energy producers, but raising prices is not the only way to reduce subsidy. And would it not have helped in lowering the price of electricity overall if all the oil fired electricity generating companies used oil at prices determined by the market?
The adjustments has not only been abrupt it has been sharp too in many cases. And that cannot be without the attendant negative consequences on the people and the economy.
Comments