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BR Research

Set the priority right

Published November 15, 2011 Updated November 15, 2011 12:00am

 With the change in the weather from summer to winter; the focus is now starting to shift from power to gas, but load shedding remains an all-weather phenomenon. The Economic Coordination Committee (ECC) earlier spelled out the gas curtailment plan for the winter months, although the same was cheerily named the load management plan. There is no doubt that there is an acute shortage of gas in these months and the government is left with no option but to curtail gas supply to its consumers. The plan is to shelve gas supply for commercial and industrial users on a rotational basis, as domestic consumers sit comfortably at the top of the priority list for gas supply. That the government is eventually left with no other option but demand side management alludes that no significant fruit bearing measures have been taken to improve local gas supplies. While domestic consumers cannot be left to freeze and starve; the plight of the fertiliser industry is also riveting. With fertiliser companies tipped to receive gas for 15 days a month during the winters, urea prices in the country will go rocketing, never to come back down even when normalcy resumes. Ideally, the domestic sector should face the brunt of the gas shortage, as its usage by this sector is least productive. However, in order to reduce the reliance of domestic consumers on gas for heating, cooking and other domestic needs there is a dire need to develop and encourage alternative sources of energy for household needs. Similarly, about 10 percent of total gas consumption in the country is attributed to the transport sector. ECC has proposed gas curtailment of three days per week for CNG stations. This proposal deserves applause and immediate promulgation. However, it will most likely fall prey to the hankering of the CNG lobbyists. Under the false pretence of supporting the etter interests of the people, CNG stations will likely keep pumping gas and minting money. Granted, gas supplies cannot improve dramatically over night. But the government can re-prioritize the list of gas recipients. The fertiliser industry should be the foremost recipient of the scarce resource; given the fact that natural gas is vital feedstock for the production of urea. Second on the priority list should be the industrial sector - whereas domestic consumers should be confined to gas supply for cooking purpose only. Transport sector should be supplied only the excess gas left after meeting the needs of the above listed sectors. But sadly, the current state of affairs is the exact opposite of this wish list. It is high time, efforts to be made to expedite gas exploration and development in Pakistan and that can only be achieved with internationally competitive prices. Rumours have it that the government is considering imposing a cess on gas usage in the name of gas infrastructure development. This will serve little purpose, as a much better way would be to offer better prices at the other end of the spectrum for explorers. One can only hope that common sense; if not better sense may prevail in Islamabad.

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