With the opposition onboard, Prime Minister Yousaf Raza Gilani gave the petroleum ministry the go-ahead to impose a two-month ban on gas supply to CNG stations in Punjab.
With gas shortfall expected to jump up to over 1 billion cubic feet gas per day next month, Prime Minister Gilani gave his approval during a high-level meeting on LNG and gas import at the Prime Minister House on Thursday.
“In addition to curtailing gas for CNG stations, a 25% increase in CNG prices is also on the cards which the Planning Commission has proposed to implement from January 1,” sources said.
During a recent meeting of the petroleum ministry, Deputy Chairman Dr Nadeemul Haq had proposed bringing CNG prices at 80% parity with petrol, against the current 55%. Petroleum Minister Dr Asim Hussain said he had supported the imposition of the two-month ban in the National Assembly. The Oil and Gas Regulatory Authority (Ogra) had proposed a 14% increase in gas prices across the board, effective from January 1, he added.
“There will be no cross-subsidy for gas consumers from January,” he said.
Prime Minister Gilani was informed during the meeting that a consensus had been reached on the ban of gas supply to CNG stations in Punjab, sources told The Express Tribune, adding however, that leader of the opposition in the National Assembly Chaudhry Nisar Ali Khan was opposing the ban.
Prime Minister Gilani directed that the ban should only be implemented if the Pakistan Muslim League-Nawaz (PML-N) agrees.
Easing the pressure
To ease the pressure of gas outages on domestic and industrial consumers, 100 MMCFD gas from the Hyderabad Gas Field will be put into the national system within a month, the petroleum and natural resources ministry secretary briefed the meeting, according to a statement issued in Islamabad.
Khyber-Pakhtunkhwa (K-P) would immediately be given 15 MMCFD gas from the Kohat Gas Field, which would be put into the national system, the petroleum secretary further added. The government had taken emergency measures to address the gas shortage issue in Rawalpindi and Islamabad and has been able to resolve it to a large extent, he said.
Negotiations with the CNG association are underway to rationalise the supply of gas to CNG stations, the secretary said, adding that priority would be given to domestic consumers during these negotiations.
Negotiations would also be held with the industrial sector to ensure uninterrupted gas supply to households, he said.
The meeting was informed that 750 MMCFD of additional gas would be flowing into the system by November 2014 – sufficient for 40% of the country’s gas requirements.
Published in The Express Tribune, December 23rd, 2011.
COMMENTS (31)
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@Ali Salman Alvi: alvi sb natural resources are always for the whole country.Just think if punjab denies water to others and starts the dams unilaterly which will cost rs 2 per unit of electricity and all of punjab will get canal water for irrigation.so ur point is unvalid.
By the way total transportation usage of gas is just 7% while power plants consume 40% gas which is main issue.we donot use coal and instead the rental power is using gas and minister is getting the kick back.
The industrialist demand that gas should be given to them on priority. The fact is that these looters (industrialist) want cheaper fuel for their industry and they sell their product on the price of furnace oil. The common man suffers with the unavailability of CNG and the rich gets richest. That is why all this drama is going on. Wake up pakistanis, and save this country from these looters.
Althought , its govt's fault to put people in a comfort of cheap fuel in the form of CNG, now natural gas is not available for house hold cooking. To give gas to industry is ofcourse out of question in this winter season. The government should but a bimonthly ban on CNG stations immediately and gradually it should eliminate CNG For cars.
This is worst,Govt.failed to manage the system.They r pushingin the days of darkneses.Shame ful decision.
@Rao Abid Ali khan: come on just pay the extra amount and use your car efficiently. Would you be happy when cng prices come 80% of par to oil?
@Ali Salman Alvi: i think every Pakistani has the right on PAKISTANS' natural resource not of sindh, punjab, kp, balochistan etc. Just like Punjab pays the highest amount in rs term the electricity bill hence subsidizing for other provinces. So this gas is for EVERY PAKISTANI not a province, they should be paid their royalty or whatever charges there are.
why the decesion is being iplemented in Punjab.For God sake realize it for poor people like raksha drivers ,taxi drivers and daily dependent.
Ive seen gas leaking from pipelines, water seeping from broken pipes. No one including this very public who are now complaining of lack of this valuable resource ever raised there voice then. A burgeoning population with a growth rate of more then 3 percent, can ill afford to waste precious resources which are bound to end some day. You can blame the govt for ill planning but cant blame them for depleted resources for which the people of this land are to be blamed. There is hardly a sense of conservancy amongst the public.
It is high time that Govt is again pushing the poor segment of society under economic burdon, how they being thrashed to wall. .They r not realizing how many families are connected to this let me tell u if the decesion is impemented it would bring a lot of resentment against govt people might go to sucide if ban is implemented.the decesion is neither ipmlementable in any rtrospect. For God sake do not even think of going about closing of CNG stations.
@Ali Salman Alvi: Like you i am also from Lahore, i tend to consider myself educated too. But sometimes i fail to see the logic behind the decisions. Govt wants to ban CNG in punjab period I see no issues there but when during wheat shortage Govt of Punjab announces a ban on movement of wheat out side of Punjab there is lots of hue and cry from other provinces, WHY IS THAT?? after all Punjab is the largest producer of wheat and should have prior rights. There was even an issue over "legal" alcohol produced in Punjab not reaching Sindh in sufficient quantity some while ago http://tribune.com.pk/story/280341/supply-and-demand-booze-supply-runs-short-over-duty-standoff/
@Faisal: The province of Sindh is the richest in many of the natural resources among the provinces of Pakistan. Sindh has been the largest producer of crude oil since many years, and now its newfound natural gas production is also on the rise, making it potentially the largest producer of oil and natural gas in Pakistan. Unfortunately Punjab is the largest consumer of oil and natural gas in Pakistan. Thus, Sindh has the prior rights over natural gas :)
P.S: By the way, I am from Lahore, Punjab, Pakistan.
PM should promise that Gas supply to industry will be ensured,
the fruits of industrial activity to be transferred to commoners, i.e, by increasing exports,
payment of energy related bills by govt, politicians, industrialists,
stop CNG for other provinces as well, why Punjab alone?
very unfortunate for punjab
It not fair to stop gas of punjab only this ban must be at hole pakistan
@Syed Imran: so the decision should be taken on karachi first, City that claims to occupy 40% vehicles of country.
its good decision.gas used in transport is wastage.industry should be given priority because industry generates jobs and increases the exports
Why only punjab? If they want to ban CNG, it should be nation wide.
i know it is going to be hard on the pockets of car owners, but people, car owners or not, need to live and people should understand that cng is a luxury Pakistan has, and should not make it their requirement.
Why only Punjab, why doesn't the government stop supply CNG throughout Pakistan ???
Excellent. Lets just hope opposition does not take this as an opportunity for politics, again!
Define the boundaries of Punjab in this case.
Excellent decision. Its cars verses household
I bet, if this happens, this will be PPP's last NAIL in the COFFIN....