Gas shortages

Published November 18, 2016

THAT time of year has returned, and once again we are facing a cold winter with unending shortages of gas that is a vital fuel for heating homes in the northern parts of the country. Once again we face the consequences of our neglect of this crucial sector, and the careless manner in which we have squandered the vital resource. Each winter sees a familiar ritual: gas allocation schedules are drawn up, the business community complains that it has to bear the brunt of the shortage while domestic consumers are privileged in the merit order list, and the government talks about its achievements in trying to arrange future supplies to ensure that the dwindling supply does not become a permanent feature of our lives. We muddle through the winter, protests are held in some towns of Punjab and receive media attention, the government becomes defensive — and then once again the temperatures begin to rise and the heaters are switched off. The issue thus falls off the radar

There is a side, however, that is always neglected, even though it is a vital element in the policy mix through which the growing gas shortages need to be addressed. And that is raising efficiencies. An entire cottage industry has come into existence across Punjab producing substandard heaters that waste most of the gas they use, so much so that bad habits have become ingrained, such as leaving a window open while the heater is running, simply to allow the unused gas to escape. The immense amount of wastage we see in the utilisation of natural gas is criminal. Two things are vital to address this. One is greater awareness, and the other is price reform of natural gas so people are incentivised in its judicious use. Unless this happens, no amount of additional supplies through imports will be enough to break out of the annual ritual that marks our descent into the growing deficit between the supply and demand of gas.

Published in Dawn, November 18th, 2016

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