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Print Print edition: 2011-12-18

The gas issue

Published Updated

The state of the country's economy today is such that day-to-day survival has become a challenge that consumes most of the common man's energy. It is a daily battle which is forced to fight just to make ends meet and as if that wasn't enough, a few facilities that the government has provided, it has now become inclined on taking back.
Even in houses where only the most essential needs are spent upon, an expense, which is unavoidable is the expense of commuting. Be it to work, or taking the children to school or getting the monthly groceries, one has to commute. The most preferred mode of transportation by the middle-class in our country is by vehicles powered by compressed natural gas (CNG).
In an effort to facilitate the general public at large, the government had taken the initiative of setting up CNG stations across the country aimed at reducing the burden of rising fuel prices on an average Pakistani. This initiative was widely appreciated and since then, CNG has grown into one of the major fuel sources used in vehicles in Pakistan.
According to the International Association for Natural Gas Vehicles (IANGV) statistics, Pakistan has now become the largest user of CNG in the world, overtaking Iran, Argentina and Brazil in the number of vehicles using gas as fuel. Due to cost savings, the Pakistani transport sector had also switched from petrol and in some cases, diesel to CNG, according to the Economic Survey 2010-11. With 21 percent vehicles converted to CNG, Pakistan is way ahead of India that has a little over a million vehicles converted to CNG, 730,000 in Italy, and China with 450,000 vehicles running on gas. According to the survey, 3,329 CNG stations are operating in the country and 2.5 million vehicles are running on gas; use of CNG as fuel in the transport sector has observed a quantum leap, replacing the traditional fuels.
Recently, the Chief Minister Punjab Shahbaz Sharif inaugurated the air-conditioned CNG urban bus service in Lahore with an aim to provide modern transport facilities to the people. The question to be asked here is how the investment that has been channeled into this project will show returns as the CNG sector is being deprived of its promised allocated gas. It will not be surprising if this project, just like Karachi's Green Bus project fizzles out.
Today, due to gas curtailment, the CNG business is on the rocks despite the government's sovereign guarantee to provide uninterrupted gas supply. This in turn is also affecting the consumers. Where it may be acceptable to debate that other industries also need natural gas, the core issue is of prioritising the curtailment of CNG as opposed to that of All Pakistan Textile Mills Association (Aptma). As per the Natural Gas Allocation and Management Policy 2005, the Aptma is entitled to receive gas for the first 9 months of the year, whereas the winter months will focus on the supply of gas to consumers. Despite the understanding and agreeing to this policy, Aptma is making a hue and cry about gas curtailment, knowing well that they are not entitled to get gas in these months.
Taking natural gas from consumers and providing it to other industries prevents not only the day-to-day commuting of the common man but also results in a hindrance to Pakistan's economic growth as a good number of industries depend on the transportation sector for the conveyance of their products and goods across the country.
This ad hoc issuance of gas being curtailed and diverted to different sectors has resulted in a very tricky situation as it is making the rich richer and the poor poorer. Aptma which comprises of manufacturers are already selling their merchandise to the market at sky-high prices, making large profits in the process. This makes them financially capable of exploring alternative options, such as furnace oil, to fulfil their needs when other sectors cannot. Industries which are directly or indirectly working to minimise inflation are not getting gas due to Aptma's irrational demands. Instead of making Pakistan economically sound, Aptma is leading our nation towards bankruptcy.
By supplying uninterrupted natural gas to the CNG sector, the government ensures not only the progress of the average Pakistani but also of Pakistan itself. A person who has the means to a cheaper fuel to power his vehicle will have more disposable income to spend, increasing their standards of living, which in turn will assist in elevating Pakistan's position in the world. It is high time the government prioritises and sticks by its own policies.

Copyright Business Recorder, 2011

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