The Government of Pakistan has reportedly decided to increase gas tariff for all consumers, a move triggered by the severe gas crisis the country currently faces.
This increase will apply to CNG as well as gas used for domestic and commercial purposes. It will vary between 14 per cent and 207 per cent depending on the region and nature of utilisation, according to the Petroleum Ministry’s estimates.
Along with the tariff hike, the government will continue to impose gas load-shedding across the country. CNG stations have been facing closures for the past few weeks, causing long queues at the pumps across the country.
It has also been reported that the government may announce a complete shutdown of CNG stations for a few months.
Local transporters have also announced strikes to protest against these shutdowns and tariff hikes, causing trouble to the masses, who use public transport for everyday travels.
Will these moves, load-shedding and tariff-hike, help the government tackle the current gas crisis?
How will these actions affect the consumers, who rely on CNG as a cheaper alternate to petrol?
What measures should the government take to tackle the gas shortage?
Dawn.com invites its readers to give their views and suggestions.
This Govt. is a disgrace on all fronts, there I said it, from energy to gas to the overall development, nothing but party politics, big life & big spendings for the politicians, they sit in thier limos and palaces, they try to be all brave and all “mohib-e-watan” on TV, while rest of us choke, and it’s not just a figure of speech.
that is so true!
Authorities are playing their usual games. Balochistan alone has enough reserves to supply unlimited amount gas to the whole of Pakistan for the next 100 years.
Only last years we discovered 3 – 4 big reserves in KP, Punjab and Sindh + there are 2 – 3 proven reserves waiting to become operational in Punjab for like 4 – 5 years. You are right power/energy policy and stratgey was never on the agenda for this gov. The only focus was to complet 5 years by hook or by crook. Like if they were selected only to complete the term. Then it was not a rocket science to avaoid this situation. The will is not there – there is no doubt about it.
Pakistan has a chronic problem of massive corruption, unending mismanagement and unrelenting wastage when it comes to gas, electric, coal, water and all other resources. Only a massive overhaul of the system will result in saving the land of the pure. Till then the general populace wait and hope…..
I don’t trust my eyes. so many extremely simple people making such innocent comments on how to resolve the issue. u think that the present govt would bother to improve anything in our country, nobody can be so simple to expect such a thing happening from such a corrupt government that corrupt is a small word. Unless there is a complete change from the smallest cadres of govt to the top nothing good can happen. I know I am making a very big wish but there in no harm in wishing that good and sincere people take over and solve the problems with great speed. Pakistan to become the land of the pure.
We must ban assembly and import of all sedan (saloon) cars + 4WDs giving a grace period of 6-12 months for car companies to align their product lines. Within a few years, a majority city cars will consume less CNG/petrol.
Explore coal reserves in Thar (and other potential places as well) and use that to power our electricity needs, saving gas for consumer use.
Work on mass transit systems in major cities.
We could also consider phasing out our residential supply network and replace it with cylinders. As it is done in the middle east. This may help in two ways. 1. Elimination of Transmission Losses 2. Encourage more careful usage of consumers of gas as they will fear the chore and cost associated with refilling the cylinder
How many Pakistanis would believe me if I claimed that both gas n power crises can be resolved within a year. Pakistan can become a net energy exporter within next 15 years, increase exports to 250 billion dollars by 2016, have every school going child receive the best education by 2015, raise national income per capita to$ 30,000 per year, full employment,, produce over 100,000 MW of electricity without burning an ounce of oil, gas or coal, have power, gas, roads and health care available to every Pakistani at their door steps, reduce food wastage by 90 percent, electric line losses by 80 percent, water losses by 90 percent. You need not trust me. Please challenge me and I will be happy to explain how is all of the above possible.
Send it to the concerned authorities; whether they take action or not it is their failure. You owe it to the nation!
I would really like to now your idealistic approach.. and please share some sources??
Sulatn has already oulined the solution, for example, the decrease of electric line loses from the presnt 30 to 35 % to the normal 10 to 15% for the present generation capascity of about 20,000 MW, will inrease the power availability by 5000 MW whic is about the present deficit.
Please don’t be modest, go ahead and tell.
The entire world is going through economical crisis from third World countries like Pakistan, India, to developed countries like USA and China all are feeling the effects of economical crises and shortage of energy. The limited energy that is available to the world is very expensive because it tied to oil. Now the new recipe for success for any nation is to provide affordable energy to the business sector. A county like Pakistan with excellent coal should rely on coal to take care of its energy needs. Natural Gas was good for Pakistan but Natural Gas got abused in Pakistan. Heavy use as a CNG to offset raising oil prices depleted the existing known reserve in last 10 years. Very little effort got put into finding new gas reserves in Baluchistan and Sindh due to political reasons and lack of will. Natural Gas alone can not take care of Pakistan energy crisis.
The energy policy of Pakistan is dictated by IMF and World Bank. Both IMF and World Bank want to look good in front of the World and always push for oil base energy because coal is dirty and oil is still a little bit greener. Well the problem is Pakistan is not KSA with oil on the other hand Pakistan has excellent coal. Why should we care for getting a helping hand from IMF and World Bank. Pakistan can finance its own small coal plants and add few water dams to the equation and Pakistan short term energy problems can be solved. The solution is very easy but you need a civil government with a spine to work towards the betterment of the country. As long as corrupt politicians are involved in the political structure of the country they will not care about the future of the country. They will continue to fight among themselves for useless agendas while people of Pakistan suffer.
I believe the entire nation should mobilize and there should be a serious debate on how Pakistan should take care its energy needs. Days of pan out’s from KSA are gone and now good energy policy with a excellent plan of action is needed. We all remember last summer while the elite’s of Pakistan were enjoying uninterrupted power supply to keep their houses and offices chilled the business community and the poor suffered. We will continue to suffer because our government has no plan. It is really embarrassing for Pakistan but it is a fact, load shedding is now a major part of Pakistan energy policy. Pakistan has the resource and unlike other countries Pakistan can take care of its energy needs but strong political will is needed along with a plan of action otherwise we will continue to suffer for many more summers to come. The long term energy needs of Pakistan can be achieved through a mix of Natural Gas , coal run power plants and water dams.
The prevailing conditions always terrify us. but now the quetion is who to vote in elections for betterment? Or this is now just a dream?
Even with half way decent government a good energy policy can be formulated. I don’t want to say Imran Khan is the answers but compare to the others maybe he can change things around. At the moment Imran Khan is making speeches and making promises but if the he can deliver based on his promises than future of Pakistan will change for good. Pakistan has everything from offshore/ onshore oil opportunities, gas fields and untapped coal resources we can easily meet our energy needs. Sky is the limit for us we need a reasonable government to do the work and the people will follow. Just look back in 1947 Pakistan had nothing, from Quaid Azam to late Banazier everybody tired there best and Pakistan had many success even though we don’t realize. For last couple of years the government did nothing and we are suffering, I believe time is for change and like it or not change is coming people are sick and tired of existence political structure.
Let us give him a chance, because he cannot- just cannot, be worse than these totally incompetent and self-serving feudals.
Govt tricks so far hasnt done any good to deal with energy crises. As its not willing to see or do anything long term for the country, they have been trying dirty tricks, layman techniques to solve the symptoms not the actual problem!
While they should come up with long term energy plan to explore and produce energy, they should also come up with plan to regulate consumption not by just price hike but in true sense of energy saving measures.
1. ban the production and sale of stone age less efficient room and water heaters in houses, encourage with replacement drives. set a minimum and efficiency ratings for consumer to guide to buy good appliances. ie A, B,C, D, E rated.
2. educate people about insulation and set building regulations for houses and industries
3. set acceptable standards of vehicle cng/lpg systems
4. educate people more about energy conservation for cars/houses.
5. incentive for alternative clean energy installations, ie wind, solar for industries, shops, houses. e.g. a petrol station can run without need of mains if it installs solar panels at the roof of the station.
most important is come up with mega plan for next 20 years including solving the current crises and then stick to it. bring group of honest and professional people and let them do the work freely, if they can produce A-Bomb, they can certainly deliver easily for energy needs!
A-bomb was delivered by the top minds, not land lords.
Energy is no small portifolio and it should be led by someone who is a subject matter expert and the energy commision should be run by such people as well, if we expected our ex-energy minister to deliver us the solution then we can take a moment to think again and laugh in misery, and naveed qamar will now lose his job for the incompetancy and trail of waste that Mr. ex-minister has left behind.
Solar energy is everywhere, 365 days in most places in Pakistan, where is the information? who is going to put up these banners?
The government should take necessary steps to bring the prices of diesel and continue the policies of the earlier Governments since the very inception so that all CNG Buses, public transport, and heavy vehicles could again be converted to its original position of 2007. The prices of diesel must be taken to the position of 2007. The vehicles are being plied on lpg and CNG since the year 1990-91 at large scale. The practice should come to an end and only domestic consumer should use the natural gas. New connections should be stopped forthwith. This the possible solution in short term to avoid a turmoil.
Eradicate gas theft…
As much as I would like to see enough natural gas available for all sectors of the economy, the simple fact remains that there is not enough of it. People are going out of work because of load shedding in industry and domestic consumers suffer as well.
In this case the least priority should be given to CNG because a person who can spend a couple of lacs on a car should also be able to spend for its fuel. I have seen brand new cars worth 14/15 lacs in gas stations filling up on CNG. Is it fair that those guys get as much priority as someone earning minimum wage?
Pakistan has a single Thar coal reserve in Sindh of about 850 trillion cubic feet (TCF), which is more than oil reserves of Saudia and Iran put together and about 30 times higher than Pakistan `s proven gas reserves of 28 TCF. These reserves of coal can not only cater for the electricity requirements of the country for the next 100 years but also save almost four billion dollars in staggering oil import bill. It requires just the initial Rs420 billion investments.
Since demand exceeds supply and gas is not an unlimited resource, gas needs to rationed as is done in times of shortages or war or famine or other natural calamities like rolling electricity blackouts in Japan following earthquake.
Three user categories exist for gas: 1. consumer, 2. industry, and 3. CNG/auto users.
Least priority is for CNG users; so shut down CNG stations for 3 months, ie Jan to Mar. Highest priority is for industry followed by consumers.
Supply uninterrupted gas to industry for 12hrs everyday to operate industry at night shift and 12hrs during day to home consumers.
Sohail,
Its all about mismanagement and vision less leadership
Increase price, or raise taxes, or get foreign aid. Pakistanis want none of these. But that is not how the world runs…. People who can eat grass for thousand years can live without gas too.
Balochistan is floating on oil and natural gas. Look for new wells to replace the depleted ones.
i would suggest complete closure of CNG as it is great life risk and at the same time have badly damaged our industries and making so many ppl deprived form their jobs… also domestic users are badly affected to this… hundreds of live burns are itself enough to close these bombshells…
Elimination of corruption is the only solution to over come the crises like gas and electricity shortage.When there is no corruption in the country sincere and prudent planners will emerge to stream line the production policy according to the available resources with out any self interest.Increase in tariff is not the remedy rather it will cause price hike and create frustration among the masses.
I left Pakistan six years ago in search for a better future…Now I want to be back in my beloved mother land. However, I fear now if Pakistan will be there when I return.
I can’t make sense how the follwoing can happen in those six years:
No Electricity; No Gas; No Railway; Pathetic PIA; Ever increasing inflation; Zardari as President and Gilani as Prime Minister surviving; No Law and Order…list is unending
Where are those 20 Billion that US has given to Pakistan over the last decade? I spent my 35 years in Pakistan, but never imagined that we would be in such a shape one day that we will not be certain about our future as nation. May Allah forgive us and have mercy on us-Ameen
hi yaqoob,
i would suggest you to not to go to Pakistani at this time. I am pretty much on the same boat. I also left Pakistan 7 years ago and moved to UK. now I am owner of an IT company and earning a lot of money.
I went to Pakistan 2 months ago and situation is worse. not a single happy news I can give you. I am from Pindi. At least I can recommend investment in property. I have invested 10millions in bahria town.
If you have money, you can invest in property. If you are interested in any welfare project, then opening a school is the best thing. I am going to open an IT college for my local area to benefit youth because govt has done nothing in that poor area.
Regard
GAS MANAGEMENT: The government cannot mange the economic system how can they manage GAS,
Price hike is to meet the gov expenditures, the government is short of 1900 billions in current/fiscalbudget, half the year passed managing curency notes printing,domestic and foreign loans, wich has exceeded 12000 billions limits, for comming next half of fiscal year the gov needs 950 billions,
So there willbe many suc increase in prices of different utilities,as there is no other channel accessable to increase national income, 200 million people , every family is paying 900 + gst , what else is required. can the gov make tax refund to people, on whom tax is not aplicabel.
If there REALLY is a shortage, then we must cut back on the use untill we make arrangements to import it from our nearest neighbour.
It is unfortunate that your comprehension of the ‘Gas Management’ is restricted to primarily CNG, and to your credit some mention of “domestic and commercial” utilization of natural gas. I am amazed that you have completely ignored industrial usage of gas. Let me add to your knowledge:
1. The backbone of any economy, for the reason of highest employment generation and GDP contribution is the industrial/manufacturing sector, which may even include sectors such as the textile sector, which add to earning of precious foreign exchange that our country direly needs at this time.
2. A brief analysis of employment in a textile industry and steel industry versus a CNG station:
CNG station employs about 20-25 people
A textile unit usually employs a minimum average of 250-300 people
A steel unit usually employs a minimum average of 250-300 people
3. So now you would argue: But a CNG station fills gas for the entire poor segment of our nation. But let me say this:
In the example of the steel industry; the construction of a smallest house, let alone mega structures, employs labor, utilizes other materials (cement, tiles, bathroom fittings to name a few) which in turn employ thousands of people, meaning these thousands of people are dependent on these industries for their ‘bread and butter.’
4. A large number of the people employed (directly or indirectly) in the construction industry, whether at the industry or at the construction site, are on daily wage basis. If the industry is not running due to gas shortage, they dont earn that daily wage which they need to support their household.
4. Let me also add: a person filling CNG in a Toyota Corolla worth Rs. 1.5 million is certainly not poor. BTW, i have even seen Prados fitted with CNG, they certainly are not poor.
5. Yes, if they could somehow restrict CNG in cars under 1000 cc, the argument of the CNG being a source of gas for poor people may be justified.
6. If the industry is not operational due to gas shortage, the product they produce (e.g: electric fans from Gujrat) will not be available to the market for sale. The industry will not be the only segment effected, the traders selling these fans will also loose.
Points to ponder:
1. How much Natural Gas is stolen through CNG stations
2. How much tax is collected by the transport sector that uses CNG
I hope i have been able to add to your knowledge.
Agreed Mr. S KHALID…….
All u stated is lack of planning on so called governmental advisors n think tanks part.
to the govt nothing is impossible…….wen thrs a will,thrs a way.
Load-shedding and tariff-hike is a problem itself and not a solution. The problem started after increase in use of CNG vehicles, was made worst by incompetence of current government.
Load shedding for industries will shut industry down which will lead to another recession (no industries, no jobs (direct or indirect), no production).
Increase tariff may help a little as it will make users cautious and make energy efficient technologies more feasible in industry but will have no effect on CNG users as prices will still be incomparable to petrol. On the other hand increasing tariffs will decrease global competence of Pakistani Industries and increasing trade deficit. Or this will cause an increase in fertilizer cost and ultimately poor man will suffer due to increase in food price.
People who own car are usually well-off people, who can afford higher price fuel and having a expensive transportation for going to work is better than having no work at all. Therefore as short term measure all CNG stations should be shut-off.
Moreover, we must understand that Natural Gas is not a renewable resource and ultimately at some stage we are going to run out of it. We must deploy some of our resources in sustainable energy such as Hydro Power and in research of to wind and solar resources to make them feasible in future.
A decade has been passed away with the Energy Crisis but still the problem is alive and worsening day by day. The upcoming tariff-hike would be a night mare for the inflation hit nation. The economy of the country is already shaking, this New Year gift could not eradicate gas shortage, gas load shedding would still be present and it is anticipated that the next year would bring massive unemployment. If still country does not work upon the alternative energy resources then that day is not so far when we will be in Stone Age. This is the murder of the poor nation. May ALLAH bless our nation.
Absolutely agree with Shirazi. How could we just say that reserves are depleted. Govt. Should push operators to open those wells, drill laterals and do hydraulic fracturing. All over the world there is excitement over the production increase in gas by fracturing and we are not using it at all in Pakistan. It is costly but for sure the returns will be there.
You need a special type of clay soil to do fracturing.Even if you have it the Americans are not going to give you the secret chemical recipe required to carry out your work.No body in the world is doing it except the Americans, and they will not share their secret with you or anybody.
Where there is a will, there is a way! Anyway, arguing about reserves is useless as this needs money to be spent and it is long term. All this government worries about is filling its pockets. Over the short term, there are many good suggestions here in this mailing list for the government to manage the crisis if there is a will!