About 3.5 billion cubic feet of natural gas is being consumed by industrial, commercial and domestic consumers daily across the country, Secretary Petroleum and Natural Resources, M. Abdullah Yusuf said on Tuesday.
Out of total consumption, about 50 percent gas is being used by power sector, 25 percent by industrial and fertiliser sectors while 18 percent by the domestic users, he said while speaking in a PTV program.
He, however, said that government is giving priority to provide gas in power, industrial and fertiliser sectors for economic benefit.
The Secretary underlined the need to rationalise prices of gas which being supplied to the consumers on subsidised rates.
"Over the years, our pricing policy has been to subsidise the domestic consumers which now should be rationalised aimed at providing this cheap fuel to more consumers," he added.
He further explained that if government enhances the subsidised products without rationalising the tariffs, the deficit would definitely rise.
Abdullah Yusuf said that production of gas has been increased about one billion cubic feet per day after the two years' hectic efforts.
The bulk of increased production is being supplied to power and industrial sector, he added.
He said furnace oil has not been imported by the government last year owing to increase in gas production, adding the country has been importing about four million tonnes of furnace oil in the past.
So, he said, the government would save about US$ 700 million in the foreign exchange bill annually.
To a question about gas provision to Azad Kashmir in the form of Compressed Natural Gas (CNG), he said government was considering such projects.
He said an experiment of provision of gas by installing CNG plants would be conducted where infrastructure cost is higher and laying of pipeline difficult in the country's far flung areas.
"We are planning to transport gas in bowsers to a storage station for onward supply to the consumers," he added.
After the networking in local towns, gas would be supplied through pipelines, he said.
The Secretary informed that as a first step, this facility would be made available at Muzaffarabad on experimental basis with the participation of the private sector.
To a question about the cost of gas through such supply, he said, it would be cheaper as compared to other consuming fuels.
When asked about conversion of railway engines into CNG, the Secretary, said CNG engines are being run in Russia and we are looking into the possibility of converting our railways engines to this fuel.