Govt to ensure uninterrupted gas supply during peak hours: Ali

Minister for Petroleum Ali Pervaiz Malik has said the government will make every effort to maintain gas supply through the pipeline network during breakfast, lunch and dinner hours. He was addressing a news conference along with Minister for Information and Broadcasting Attaullah Tarar in Islamabad today. Ali Pervaiz Malik said if necessary, additional LNG will also be imported to meet domestic requirements, while rationing can be considered if circumstances demand. He said Pakistan’s annual LPG demand stands at approximately 2.4 million tonnes, while domestic production is around 2,000 to 2,500 tonnes per day. The remaining requirement is met through imports, including supplies previously received through the western border and sea routes. The Minister for Petroleum said disruptions in supplies through the western border have created additional challenges, highlighting the need to diversify import sources and strengthen the country’s energy infrastructure. He said the Prime Minister has directed the formulation of a comprehensive energy security framework, including improvements in storage facilities, refineries and LPG import infrastructure. Ali Pervaiz Malik said the government has decided to introduce competition in the LPG sector to ensure the availability of the commodity at the lowest possible cost to consumers. He said state-owned companies, including Pakistan State Oil, Sui gas companies and Pakistan LNG Limited, have been directed to arrange bulk LPG purchases through government-to-government and business-to-business agreements. The private sector will also be encouraged to import LPG, which will increase supply and promote competition. The minister said all importing companies will publish details of their monthly procurement costs, including Saudi Aramco’s contract price, premiums and freight charges, on their websites to ensure transparency. He further said the existing quota-based system for locally produced LPG will also be replaced with a transparent auction mechanism. Companies will offer the commodity in lots of five to ten tonnes, and auction results will be made public under the supervision of the relevant authorities. Ali Pervaiz Malik said the government has also taken measures to protect low-income households from the impact of international price fluctuations. Under the LPG policy, ten percent of the quota reserved for hard areas will be distributed transparently through state-owned companies in consultation with provincial authorities. He said additional revenue generated through the new pricing and auction mechanism will be channelled into a Price Stabilisation Fund and a Vulnerable Protection Fund to provide subsidized LPG to deserving consumers. The minister said the Competition Commission has also been directed to prevent market manipulation and the formation of cartels, while OGRA will further improve transparency in its licensing and regulatory procedures. The relevant authorities will also monitor the quality and safety of LPG cylinders and transportation vehicles through a track-and-trace mechanism. Ali Pervaiz Malik estimated that the international market price of imported LPG, after including premiums and other costs, can range between 450 and 500 rupees per kilogram. He said the government will provide targeted relief to deserving consumers through the differential fund mechanism, with subsidized rates to be determined by the Prime Minister. Speaking on the occasion, Attaullah Tarar said Prime Minister Shehbaz Sharif has placed the protection of public interests at the forefront during the ongoing crisis. He said the government did not allow any additional burden to fall on the people. The minister said the government has also decided to promote competition in the liquefied petroleum gas sector to facilitate consumers. He said the government transferred profits earned by refineries to the public, adding that such an initiative has never been undertaken in the country’s history. Attaullah Tarar said all measures taken by the Prime Minister are aimed at providing relief to the people.