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.
We are in a problem. we need solutions not reasons of the problem. most of the people are giving reasons of the problem. short terms solution could be following:
1- No CNG for Cars more than 1000cc.
2- No CNG for Bus or trucks.
3- Only wagon running within city can be on CNG.
4- Whole nation should take responsibility of theft of Natural Gas and must inform concerned dept if we see any incident regardless of our relationship.
INDUSTRY MUST RUN 7 DAYS A WEEK SO THAT LABORERS GET THEIR WAGES TO FEED THEIR FAMILIES.
Current spot LNG price has been hovering around $10-12 / MMBTU, any imported gas be it LNG or Iran Pakistan Pipeline will be priced no less than $12 / MMBTU. Upstream companies that are operating under various petroleum policies have little incentive to drill given existing pricing offered $5-7/ MMBTU.
I think giving the upstream companies pricing incentive is one way to improve drilling activity which has completely dried up. Once done, E&P companies with a large acreage ought to be held accountable for not drilling enough.
Domestic consumers have the highest priority for receiving gas in the SNGPL/SSCG network, most domestic consumers don’t require high quality pipeline gas (~1,000 BTU / SCF) and can operate stoves and other household equipment on low btu gas or even LPG. SNGPL/SSGC are infrastructure companies who get paid a guaranteed Operating Income @ 17.5% of Net Operating Assets so long as the UFG (unaccounted for gas) benchmark is below a certain threshold. As such, it is in SNGPL/SSCG’s incentive to construct bio-gas digesters that can produce gas with heating values ranging from 500-700 btu / scf. Setting up gas digesters must be given priority for New Towns and Villages.
Finally, our whole E&P chain is tied up in multiple Public Private Partnership structures, facts are that when expensive gas will eventually get fed into the gas marketing system (SSGC/SNGPL), cross-subsidies will be passed onto end consumer in one way or another. That pass-thru is not visible at all, GoP continues to respond with random load management that isn’t helping any one. Ideally petroleum ministry should look at gas production and commit to a schedule, while looking to optimize the Fiscal and Current Account, and make that case with the end customer.
Iran gas will be around $5 mmbtu, and LNG will go any where around $18 mmbtu. Iran gas line is a genuine resolution, specially where the Iran part of the pipeline has already been constructed.
The need of hour is to complete Iran/ Pakistan gas pipeline, investigate the criminal negligence on part of gas management companies.
There has been unreasonable emphasis on bringing LNG to Pakistan at cost of Iran Pakistan gas
No planning no strategy of goverment to generate gas but it is simple solution gas tariff increase.
until everyone stops using it!!!
Their is some thing wrong in this sector the government is intentionally bringing us to the level that a big price hike is inevitable and will have to be allowed and tolerated. In my opinion this is why we are being set up and these crisis have been created. Where did the Gas suddenly go how many industrial units have been installed since last 2-3 years how many private customers have been supplied this resource since last 3-4 years less then 100 or 150 thousand so from where this shortfall has popped up??
The first priority is and should be public in masses as every resource in this country is the right of public and to facilitate the comfort of the public. At the time of when gas was explored/found it was decided that the consumer(Public)will be the 1st beneficiary then the industry. But now to maximize the profit of the industrialist due to high prices of fuel it is the common man who is going to suffer. If a medium /salary class person buys a vehicle(small)one or an old one to move with his family honorably then why is it he who is marked to suffer. When no proper transport system is available for common man then why the government wants to take away a cheap source of transportation from him.
The end is that this commodity is for common man and he should be benefit from it first before the industrialist. As all the Industrialist are in the Government I don’t think this point can be understood so Allah Hafiz common man you are born to suffer.
First of all government should to decrease the corruption form all departments,in my point of view as all are aware also that pakistan country is full with natural resource like four season with lots of crops but always pakistani nation face the acute shortage of food.same problem are rising in natural resource even though pakistan is rich in coal mines but unfortunately cant utilize the proper usage of resources.i would say please promote the new ph.d holder educated lobbies they can develope & manipulate the resource in appropriate way.
I think the tariff has to be designed on the grounds of equity. It should be subsidised for the poor and wealthier should be taxed more and they should be the ones who should be affected by any plans of tariff hikes. Similar method is in the news today as Govt is planning to cut down subsidy for consumers of more than 100 units. Also during all this happening the vested interested should not be allowed to pitch poor people against government as we hear the calls for protests from various sides. Government is above all for the management of the system; it is the people who should bear the burnt of any shortages.
(1) Public at large believes that their government is doing *NOTHING* to alleviation energy crises. The first thing govt should do is to tell about a * ROAD MAP* that how things will improve in coming years. As an example it should post the *PROGRESS REPORTS* of IRAN-PAK gas pipeline on a website on monthly basis.
(2) For the short term, govt should take all the stake holders on board. When you start solving a problem, you try to get a *WIN-WIN* situation. On the contrary, few people sit in a meeting room and decide whatever comes into their minds being oblivious of everything else. An example is the recent meeting headed by our finance minister deciding that no car will now be fitted with a CNG kit. They took this decision without taking investors into confidence. And that is quite *GROSS*
(3) I think gas price for CNG and domestic sector needs to be increased. One reason is that we, the public have been using this precious resource as if it is free. Examples are: keeping the gas heater running all day long or not caring if gas is leaking from somewhere or using old style geysers etc. When price will be relatively high, people will start using it *WISELY*.
(4) Ministry needs to use technology to track any stealing of gas. Someone will argue that price hike will encourage people to use some unlawful means. I will say please give me a break! If you can’t afford something that does not mean you should steal it. Govt might try to give an incentive that if a household will use less than X units of gas per month, they will be charged a lower rate slab.
(5) Lastly we want to see *ALL* of govt machinary to use all the resources efficiently. If we, the people, are trying hard to save resources while govt is using them lavishly, then I am afraid that *STREET POWER* will take its toll!
The measures government is planning to introduce from 2012 will start a new vicious circle of inflation. Rather than looking for leaks and pilferage going through the gas distribution the people’s government is passing the burden to its people. we have been hearing about tight gas reserves,Thar coal power, abundant wind energy, Iran gas pipelines, Bhasha dam , electricity from sugarcane etc from 2000 and on. but what is the result – NIL EXECUTION- for us it is a decade of collapse…..
Some measures
1- Control gas pilferage and punish the gas thieves
2- control the gas margins of CNG station owners. if petroleum margin is Rs.2 why it is R. 28 in CNG
3- Conduct gas audit of industrial users to assist them in reducing gas consumption
4- Assist companies to introduce energy efficient geysers and heaters.
5- introduce building codes for thermal insulated buildings
6- Government must cut down overstaffed gas companies expenses by 30 percent and move the savings for the expansion of energy needs…
7- Each CNG kit of car must be overhauled and cleaned annually to reduce gas consumption by each car from 10 to 15 percent( usually the gas jets inside the kit broaden after 8-9 months of use and consume more gas)
Only solution is to look for new gas reserves, convert existing power plants to coal, shut down fertilizers plants for 2 months and invest in solar power as well as in energy efficient appliances.
Fire this corrupt government now
Government should say three things and all gas management related issues will get resolved. One, “Government will complete its 5 year term”, two, “Government will not allow another state within state” and three, “Gas management is a serious challenge to democracy”.
As result of gas price increase common people’s suffering will become multifariously unbearable, whereas, rich people who are in its business will become richer.
May the 70% poor cum middle class Pakistani people be blessed anyway!
Pakistan should look into horizontal drilling either in existing reservoirs or in shale formations. In USA, specially here in Oklahoma, we are producing so much natural gas that the price has dropped to less than half. It will take some time, but it should be started as soon as posible. Horizontal drilling along with hydraulic fracturing can bring some relief to Pakistan.
I fully agree.
The whole world is excited about the changes Hydraulic Fracturing has brought to Natural Gas production.
Unfortunately, neither of horizontal drilling or fracturing is being done in Pakistan. I think the Govt. should push the operators to go for it to fully exploit the potential.
We just can’t buy that the reservoirs are depleted and we can’t do nothing about them.