The domestic consumers are in a fix as the winter gas crisis has further aggravated with no gas available in many areas of the mega city. Though the crisis has been going on for the past two decades and is now worsening rapidly, affecting domestic consumers severely.

They are shocked that gas is missing but huge bills are issues. Electricity bills and inflation had already broken their backs, now additional gas bills put them to the test. Despite the 200% increase in gas price for domestic consumers, the worst load shedding of gas continues in most parts of the country.  People say that when gas comes in, its pressure is abnormally low. Geysers do not go on. LPG cylinders are also out of their affordability as they are expensive.

Pakistan meets 31% of its fuel needs from gas, with local production falling to 15%. A few years ago, the total daily production of gas in the country was 3.8 to 4.2 billion cubic feet, while the demand increased to 6 billion cubic feet in normal days and 8 billion cubic feet in severe winters.  There has been a big difference due to which the gas crisis is becoming more severe. The government is resorting to imported LNG but it is not being controlled.  The situation becomes even worse for the consumers when they face problems of electricity load-shedding along with gas in severe winters.  In the last few years, the country has rapidly moved towards an oil and gas crisis, which serious planning is essential to overcome in the future. Increasing gas theft and irregular maintenance of pipelines have also led to leakage of gas. Scarcity may be a factor.  The completion of the contracts with Turkmenistan and Iran for many years can also provide consumers with cheap gas.

The recent crisis caused by the non-availability of gas in the country seems to be serious in the coming months as well.  As reported,  the Italian company has informed the Pakistani authorities that due to delivery difficulties, it will not be able to provide the required cargo in time in January. Transportation  can be an issues as one cannot rule out the possibility of delay but there are many examples in the world of dealing with it, while it is surprising that there is no alternative source or substitute in a country rich in mineral resources with a population of 25 crores.

Load shedding of electricity and gas, which was limited to summer and not in winter seasons in its early decades, has increased to twelve months in recent years.  Gas is the most important source of energy in Pakistan and accounts for 31% of the total demand. depends on local production and imports. According to experts, behind the gas crisis in Pakistan and the severity prevailing in it is the increase in its price in the world market with the continuous decline in domestic production, while billions of tons of coal in the land.  Currently, there is no cheaper source for domestic and industrial consumers. From time to time, the nation receives good news about the discovery of new oil and gas reserves, but the matter does not go beyond that.  Delivery of imported gas from overseas countries by cargo. And it is possible through the pipeline from the neighboring and nearby countries, in which the latter is better and feasible in all respects.  Agreements have been signed with Turkmenistan and Iran for many years, the completion of which will provide uninterrupted 24-hour cheap gas to domestic and industrial consumers.  As soon as possible, the government should complete this project without any delay.

Moreover, there has been 200 per cent hiki in gas prices for consumers in recent months. Meanwhile,  authorities say that widespread theft of gas is the real issue. The widespread theft of gas like electricity in the country can be estimated from the report that 12090 illegal domestic connections were caught in an operation in just four settlements of Karachi.  Along with this, illegally obtained connections for flour mill, steel and ice factory in the industrial area were recovered from the same premises. A similar big case was caught last year in a suburb of Peshawar where the connection from the main pipeline was taken.  Gas was being supplied to the entire township. The matter of gas theft is so technically sensitive that its delivery is done by the company's staff through the relevant machinery, as if it is impossible for officials to be involved in its theft.  In the country, the gas crisis is not just today, it has been intensifying for more or less two decades.  During this time, industrial production has been affected by its shortage and many people have become unemployed, and on the other hand, the revolving debt of the needle gas companies has reached 2900 billion rupees.  In this situation, after the 193% increase on November 1, 2023 to receive 275 billion, the IMF is demanding a further increase of 705 billion rupees from January 1, 2024, which will be met from the poor.

Right now hundreds of industrial units are defaulters. In the light of the above-mentioned extremely alarming scenario, there is no room for delay in taking action under an effective strategy against gas theft and corrupt officials for the recovery of dues at the national level so that it can be met in time and the millions of poor and salaried could avoid a new test of price hikes. The irony is that Pakistan is rich in oil and gas, but serious efforts should be made to find them. The poverty found in the country and the current situation demanded that the IMF should withdraw from the mentioned increase in gas prices considering this 70% of the population. But it could not do so. In such a critical situation, the government should initiate steps to focus on news gas discoveries so that gas resources can be increased and the supply issues can be overcome. Right now, the gas loadshedding in severe cold conditions is something which needs to be taken notices of.

Published in The Daily National Courier, January, 12 2024

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.