Punjab, Sindh and Islamabad: Gas supply to certain industries, CNG sector stays suspended

The government-owned gas companies - Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) - have continued suspension of gas supply to industrial (excluding export-oriented industry) and CNG sectors in Punjab, Sindh and the federal capital.

The closure of gas supply to industrial (excluding export-oriented industry) and CNG sectors in Punjab and the federal capital is part of winter load management plan 2019-20 of the SNGPL.

Senior leader and Central Chairman of All Pakistan CNG Association, Ghiyas Paracha expressed his concern, saying that closure of CNG stations will lead to further increase in gas prices as expensive LNG is being provided to the low tariff sectors that will lead to closure of businesses and unemployment.

He emphasized that CNG stations should be switched from cheap local gas to expensive RLNG as they were assured continuity of the supplies. He added that 1,100 CNG station owners deposited Rs 1.2 million each as advance payment in order to ensure continuous supply of gas but after depositing billions of rupees in the government kitty, the CNG sector has, once again, been deprived of the imported gas whereas the same gas is being provided to the low tariff sectors.

While CNG closure in Sindh is totally unfair as they are operating on local gas which is a provincial resource.

The central chairman of APCNGA said that this will lead to further increase in the gas prices and circular debt. This vicious circle forces the government to increase the gas rates for the next 6 months and the general masses will have to pay the price of unemployment and other consequences. Transport fares will rise up ultimately. So it will add to the miseries of masses, transporters and owners of CNG filling stations, he further said.

He added that this will also negate the Prime Minister's initiative for the control of smog in urban areas.

At present, a huge number of consumers, especially those living in areas situated at the tail-end of pipelines, are witnessing extremely low pressure or no gas on daily basis.

The supply situation has worsened, forcing the company to take a decision to meet demand of domestic consumers. Domestic consumers are complaining about extremely low or zero gas pressure in many areas of Lahore, Rawalpindi, Karachi and other parts of the country.

Copyright Business Recorder, 2019