Govt assures public of meeting winter gas demand, hints at 'good news' for fuel prices

Prime Minister Shehbaz Sharif addressed a press conference in Islamabad, urging the government to make every effort to meet the demand for liquefied petroleum gas (LPG) during the winter months. LPG, widely used for rickshaws, cooking, and other purposes by those not on the piped gas network, is experiencing supply disruptions due to closed Iranian border crossings.

This has led to LPG being sold at twice the official rate in the open market. The minister assured that the government will bring in the most expensive fuel for the piped network and utilize liquefied natural gas (LNG) to meet demand. Additionally, LPG is needed for various other purposes and by those without piped connections. Domestic demand is expected to surge by 400 to 500 million cubic feet per day, and curtailment may be necessary to ensure supply during meal times.

The government has announced a new arrangement where oil refineries will contribute to the petroleum levy, allowing a reduction in petrol prices for consumers. The total LPG demand is approximately 2.4 million tonnes, with local production accounting for 2,000 to 2,500 tonnes per day. Some individuals have attempted to exploit the situation by offering LPG at higher prices.

The country's energy security architecture is currently being built from scratch, as no work has been done on fuel storage or refineries. Prime Minister Shehbaz is personally spearheading efforts to rebuild the entire system. Ogra has made the LPG supply process transparent, and competition has been introduced in the sector.