The minister said due to increased consumption of gas in severe cold, the lower slab consumers had come into the higher slabs, which was the main reason behind inflated bills. PHOTO: FILE
Talking to media, the minister said the step was taken to facilitate the consumers who could not afford to pay the entire bill.
Consumers, who received Rs20,000 or above gas bills, are being provided with the facility to make payments in four installments. He said Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) had been directed to avoid disconnecting gas connections of the consumers.
Admitting that the inflated bills were a burden on the consumers, the minister said the government was not in a position to pay subsidies due to poor financial health of the gas companies.
The system of purchasing costly gas and selling it at cheaper prices was not long lasting, he said and added customer care centres would remain open on Saturdays and Sundays to facilitate the consumers.
The minister said due to increased consumption of gas in severe cold, the lower slab consumers had come into the higher slabs, which was the main reason behind the inflated bills.
“In 2018, the government of Pakistan Muslim League-Nawaz (PML-N) approved gas supply schemes of Rs55 billion, only to please people and get votes, which was tantamount to pre-poll rigging,” Sarwar alleged.
He said the PML-N did not increase gas prices in its tenure. The Pakistan Tehreek-e-Insaf (PTI) government was duty bound to paint the real picture in front of the people as gas companies could be closed if they continued to lose money, he added.
Talking about exploration of resources, the petroleum minister said offshore drilling had started last month and good news was expected by the end of next month.
“So far, 3,500-metre-deep drilling has been done out of 5,500 metres. The government is trying to expedite gas exploration as the current gas reserves are racing towards depletion,” he said.
By 2027, the current reserves could be depleted, he warned, adding that the government had abolished duties on offshore drilling to attract maximum investment in the sector.
The minister pointed out that cumulative losses of gas companies, including SSGC and SNGPL, were Rs154 billion per year, adding that gas worth Rs50 billion was being stolen with immunity.
The minister said according to analytical reports, the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project was the cheapest as compared to other projects and work on the project was under way.
The prime minister would be briefed on the TAPI project next week, he added.
Responding to a question, the minister emphasised that Saudi Arabia, the United Arab Emirates (UAE) and other countries were willing to invest in Pakistan as their confidence had been restored.
He said the government took the difficult decision of rationalising the gas tariffs in order to steer the gas companies out of losses.
Around 9.3 million consumers were utilising the network of Sui gas companies, he added.
Published in The Express Tribune, February 3rd, 2019.
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