ISLAMABAD: Amid depleting natural gas reserves in the country, Caretaker Power Minister Muhammad Ali has announced that gas availability during the winters will be limited to only eight hours.
Caretaker Power Minister Muhammad Ali mentioned that gas load shedding has been ongoing for several years, and the situation will persist this year due to insufficient gas reserves to provide continuous 24-hour supply. Like the previous year, there are plans to ensure an eight-hour gas supply. Furthermore, natural gas reserves have decreased by 18% compared to the previous year.
Minister Ali expressed hope that, by finalizing two liquefied natural gas (LNG) cargoes, they might be able to patially resolve the issue of gas shortage for the industry in December. He emphasized that efforts are underway to ensure gas availability for the domestic, industrial, and fertilizer sectors with minimal load management during the upcoming winter season.
In the ongoing crackdown on power theft, the minister reported that authorities had collected around Rs16 billion from electricity defaulters, with the crackdown continuing. He also mentioned plans to change the boards of directors of power distribution companies (DISCOs) and to transfer DISCO management to the private sector on long-term concessions.
The Petroleum Division is in the process of finalizing a proposal to increase the gas tariff. The division will present this proposal in an Economic Coordination Committee (ECC) meeting for approval. Following approval by the federal cabinet, the new gas prices will be notified based on the date of cabinet approval, rather than from July 1, 2023.
The tariff adjustments are going to affect even protected residential consumers in lower consumption slabs, potentially leading to increased rates for gas utilization.
