CCE meeting: PM turns down proposal to increase gas tariff

2,400 MW to be added to the national grid by summer 2015

ISLAMABAD: Prime Minister Nawaz Sharif on Friday deferred a proposal to increase gas prices, The Express Tribune has learnt.

Presiding over the Cabinet Committee on Energy (CCE) meeting at PM House in Islamabad on Friday evening, the premier decided that he will now preside over CCE meeting after every fifteen days and reiterated the comment to overcome load-shedding issue before his tenure ends.

Advisor to PM Dr Musaddik Malik said that officials present during the meeting suggested that the premier increase gas prices as per the regulatory authority’s proposal, but prime minister deferred it.

Malik hinted that the prime minister may, however, review his decision in future.

According to sources in the CCE, Nawaz also directed the Ministry of Petroleum and Natural Gas to submit a comprehensive presentation on the availability of gas for different segments of consumers including domestic, commercial, industrial and fertiliser.

Jointly briefing the meeting, by the Ministries of Water and Power and Petroleum claimed that before the summer of 2015, power supply will be boosted by 28 per cent (2,400 MW) which will help bridge the demand and supply gap.

While addressing the meeting, the prime minister said that the government is committed in eliminating load-shedding and the priority of the government is to tap Thar Coal resources for efficient and cheap energy production over the next three years.

The premier added that that line losses and power theft should be minimised.

The committee was briefed also about various long-term and short-term projects which are expected to be completed by 2016-17 including coal, LNG, Solar and Wind based power generation projects.

The prime minister approved the policy to provide locally produced gas to the power sector to make it more affordable and efficient. Similarly, he also approved a move to provide surplus LNG gas to the CNG sector.

The PM sought a comprehensive energy conservation and management plan for electricity and gas sector for presentation at the next cabinet committee meeting.