The Government claims that the supply of natural gas is dwindling fast and therefore they have proposed to increase the rate of natural gas to consumers, while also proposed to install a special tax that will be used for finding and developing new gas wells across Pakistan to help increase the supply. In this spirit Punjab government has asked SNGPL to stop the supply of natural gas to CNG stations, to help improve supply and finances of SNGPL but on closer inspection, one can see the chicanery of Punjab Government and malafide intentions of SNGPL staff, because both of them have failed to mention that CNG stations pay Rs 651 per mmBTU, while fertilizer plants pay only Rs 116 per mmBTU for their feed stock (Engro gets a crazy Rs 60 per unit rate).

If a natural resource is facing a shortfall, shouldn’t the supplier and Government ensure that this limited stock be sold at the highest rate possible to help generate income for the supplier, which can be used to find new gas wells? Why is SNGPL asking for a higher rate from domestic consumers, when they cannot manage to sell their current stock, at the highest rate to industries?


Peshawar, November 19.