Winters are around the corner and the government is in dilemma over the diversion of costly imported RLNG to domestic consumers in winter.
There is already high inflation and a gas deficit is on the way as well. The government is trying to determine a quantity that it should divert to domestic consumers during the winter.
It is observed that in the previous years, LNG was imported and Rs. 108 billion worth of LNG was diverted to domestic consumers. However, the cost of it is still yet to be recovered. The government only paid Rs. 66 billion to Pakistan LNG Limited (PLL) and the remaining are yet to be paid.
An official of the Energy Ministry said, “The country’s gas sector is already soaked in mammoth circular debt of Rs1,500 billion owing to which it has become unsustainable like the power sector facing Rs2,500 billion circular debts. And during this winter, the government is inclined to inject LNG of 250-350mmcfd into the domestic sector to cater to the energy needs of the domestic sector. This will cost the government another Rs110 billion,”
The government is also in dilemma regarding the subsidies for RLNG, however, an amount worth Rs.19 billion will be used for that purpose. The official added, “Still, we have Rs19 billion to finance the subsidy, which is much less if the government diverts RLNG to the domestic sector during the coming winter season,”
The government is in the process of deciding on the matter that the cost of RLNG will not be recovered from domestic consumers.
The company officials and authorities have also discussed that there would be a gas deficit of 1-1.2 billion cubic feet per day, in January. For that purpose, gas will be closed down for the industry sector and CNG and the export will be halved. Moreover, the price of an LPG cylinder will be Rs. 2300 per cylinder.
