End of moratorium: PM clears lifting of gas connection ban

Petroleum minister says Punjab may get lower gas pressure in winter

ISLAMABAD:

The prime minister has given the go-ahead for lifting the countrywide moratorium on new gas connections enforced since 2011 because of natural gas deficit.

On Thursday, the petroleum and natural resources minister told a parliamentary panel that PM Nawaz Sharif had on May 4 approved a summary moved by the petroleum ministry to end the ban on new gas connections.



Shahid Khaqan Abbasi shared these details during a meeting of the National Assembly’s Standing Committee on Petroleum and Natural Resources. The meeting was chaired by Chaudhry Bilal Ahmed Virk.

The PPP government had imposed the ban on new gas connections in 2011 for commercial, industrial and upcoming residential societies because of serious natural gas shortage.

When asked for the reason behind the decision to lift the ban, the minister said the gas-producing provinces had been requesting the federation to end the moratorium for long.

On a question if there would be any negative consequences, Abbasi said consumers in Punjab might face low gas pressure issues in winter but Khyber-Pakhtunkhwa, Sindh and Balochistan would not witness serious implications.

The minister also directed the managing directors of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) to compel their regional general managers to coordinate with consumers and resolve their problems within regional offices.

Gas supply to be diverted from Engro to Guddu plant

He said it had been noticed that regional general managers were referring gas consumers to head offices over minor issues.

He also directed the SSGC and SNGPL authorities to ensure timely release of funds to the families of the deceased company employees.

When the committee members pointed out that gas companies were not catering to customers within five kilometres of the gas fields, the minister said the firms did not have sufficient funds to provide gas to those areas.

He suggested that MNAs from such constituencies should provide development funds for bringing gas to their areas or the provincial governments should contribute for the projects.

Substandard petrol

Abbasi added that operating petrol pumps was not possible in Pakistan without fuel adulteration and tampering with meters.

To curb these practices, he called for creating competition among the fuel stations by deregulating the Inland Freight Equalisation Margin.



The committee decided to summon the petroleum concession director general along with the required information in its next meeting. The decision was taken in view of the official’s failure to submit the information required by the committee within the stipulated time.

The parliamentary panel summoned in its next meeting the Oil and Gas Regulatory Authority (Ogra) chairman after voicing concern over Ogra granting permission to some defaulting CNG stations to sell LPG.

The committee also directed the petroleum and natural resources ministry to review its decision of supplying petroleum products to dealers during the last week of the month. The members were of the view that in rural areas, sale of fuel was directly linked to the demand during sowing and harvesting seasons. Therefore fixing a quota for dealers in rural areas would result in drying out of petrol stations.

Published in The Express Tribune, May 6^th, 2016.