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Gas Cannot be Made Cheaper by Govt Beyond Certain Point: FM

According to our sources, Federal Minister of Energy Hammad Azhar indicated on Friday in Islamabad that the federal government can only reduce gas prices to a certain level.

Read: SBP Increased Interest Rate from 8.75 % to 9.75%

At a press conference in Islamabad, the energy minister stated that despite several constraints, such as the depletion of existing natural gas reserves and increased demand during the peak winter season, sui southern and northern companies were making all-out efforts to ensure good gas supply management for domestic consumers.

According to him, domestic gas consumption increases throughout the winter, and the government restricts supplies to non-exporting general enterprises and captive power plants to accommodate this need.

In addition, he noted that existing natural gas reserves are decreasing at a rate of 9% per year, despite the fact that demand has increased rapidly and imported Liquefied Natural Gas (LNG) is too expensive for the government to distribute to domestic customers.

Read: CPEC’s Western Corridor’s Artery is to Be Inaugurated Today

The energy minister stated that the situation in Karachi was created by a stay order imposed this year by the Sindh High Court (SHC) on lowering gas supplies to general enterprises and captive power facilities.

According to Azhar, the Sui Southern Gas Company (SSGC) had been instructed to seek an earlier hearing date and request authorization to reduce industrial supply in order to meet the needs of home consumers. The next hearing before the SHC regarding this issue was scheduled for December 30; however, he stated that the Sui Southern Gas Company (SSGC) had been instructed to try to get the hearing date moved up and to request permission to reduce supply to industries in order to meet the needs of domestic consumers.

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