Massive gas price hike likely today

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An urgent meeting of the Economic Coordination Committee of the cabinet (ECC) has been called on Thursday (today) to settle the contentious issue of allocation of natural gas to the influential independent power producers (IPPs) and the industrial and fertiliser sectors, and to increase gas prices by 10 to 100 percent for various consumer slabs.
Petroleum Minister Dr Asim Hussain told reporters on Wednesday that the ECC would decide on the equitable distribution of gas between the IPPs and the industrial and fertiliser sectors by cutting down their present allocations. “Without a cut in their shares, equitable distribution was not possible. Everybody should share the shortage equally,” he said. “We have decided that all the country would have to equally share the gas load shedding,” he added.
PRICE INCREASES: The Petroleum Ministry, he said, would be sending a summary to the ECC seeking increase in gas prices. The summary recommended increasing gas prices by 10 to 15 percent for domestic consumers, up to 20 percent for industrial users and 100 percent for the fertiliser sector from July 1.
He said two days of no gas every week was proposed for the Compressed Natural Gas (CNG) and industrial sectors in Sindh. A nationwide gas load management plan was already under preparation, he added. The government was forced to convene the special ECC meeting because during a meeting with the Karachi Electric Supply Company (KESC), a demand for allocation of 239mmcfd of gas was made by the company for its newly-installed 565 megawatt generation plant.
The company claimed that without gas allocation it could not ensure uninterrupted power supply to the city. Dr Hussain said that he proposed during the meeting a two-day gas outage every week in Sindh to meet the demand for power generation. He said the gas produced in any province would be utilised in the same province. Even after curtailing gas to CNG and industries, only 200mmcfd could be provided to the KESC.
“There is no surplus gas. We can only shift gas from one sector to another,” he added. Another heated debate took place between the representatives of four gas-based IPPs and the fertiliser industry in a meeting at the Petroleum Ministry to sort out allocation of gas from the network of Sui Northern Gas Pipelines Limited. IPPs require 155mmcfd, while fertiliser sector consumes 240mmcfd of gas. The minister said they fought over gas even though there was no surplus.

5 COMMENTS

  1. May GOD gas out PPP-Z ,MQM,ANP,MLQ out from Pakistan who have ruined the poor, safaidposh,retired from private sectors who have no,salaries and pensions to increase but killed by horrible rising prices and utility tariffs.O.GOD,burn these rulers in sun,without gas,without electricity,without food,without medicines etc and burn them in hell.They have killed your 16.5 killed poor and safaidposhs.

  2. Oh God, include PMLN that have ruined Punjab with thier inefficient and disastrous policies.

  3. May GOD gas out PPP-Z ,MQM,ANP,MLQ out from Pakistan who have ruined the poor, safaidposh,retired from private sectors who have no,salaries and pensions to increase but killed by horrible rising prices and utility tariffs.All those who opposed Kalabagh Dam,(THE CHEAPEST SOURCE OF ENERGY,MILLIONS OF MORE ACREAGE IRRIGATED,DETERENT TO ONSLOUGHT OF FLOODS ETRC) , for oil commissions of billions of dollars from vested groups are the enemies of poor of Pakistan responsible for 12-14 hours loadshedding,thousands of mills closing down and millions getting jobless etc.They should be rejected in next elections,PPP-Z,ANP,MQMetc O.GOD,burn these rulers in sun,without gas,without electricity,without food,without medicines etc and burn them in hell.They have killed your 16.5 killed poor and safaidposhs.

  4. people think they will live for ever and collect wealth from illegal means.. soon all of us will die and take nothing with us on our way out of this world

  5. Today is 18 July 2011, Who will resolve Electricity Load Shedding? What is our mistake? I request to The President, P.M. F.Ms, KESC to look into the matter seriously.

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