Daily Times

The gas crisis in the country seems to have exacerbated, with consumers hardly getting the facility despite its price being hiked by 112%. Moreover, gas is not available to consumers as per their requirements despite high bills and there is an alleged shortage of 2,000MMFCD despite import of liquefied natural gas. Also, authorities say gas prices are likely to increase further. A sharp decline in domestic reserves of natural gas has widened the gap between supply and demand. Currently, the demand for gas is 6,000MMFCD, while its supply is 3,900MMFCD including the imported LNG. According to government officials, domestic gas is likely to run out in five years, while they want to run the country’s reserves for 10 years. Therefore, gas load shedding has become a necessity even in summer.

On the other hand, bearing the financial burden of expensive imported LNG has also become a big challenge.

In order to meet the revenue target of Rs610 billion this year, the tariff for all consumers, including domestic, has been increased from 25 to 113%, while a subsidy of Rs80 billion has been withdrawn from the import sectors. Even then, experts call these measures insufficient. Former petroleum secretary Dr Gulfaraz said along with imports, “we will need to pay attention to exploration also”. No matter how many energy appliances there are in Pakistan, whether motor, heater, geyser or industrial appliances, their energy rating is quite inefficient, he remarked. The price of gas for commercial consumers has been increased by 28.6%, and 22.8% for the power sector. Gas for industries has become expensive by 34%, CNG by 31% and fertilizer by 46%.