Key Takeaways:
- Transition from natural gas to liquefied petroleum gas (LPG) suggested by Petroleum Minister Dr. Musadik Malik.
- Increased security costs are driving companies out of Pakistan.
- Only a small percentage of the population currently uses LPG.
Rising Security Costs Affecting Business Operations
Petroleum Minister Dr. Musadik Malik has proposed a shift for domestic consumers from natural gas to liquefied petroleum gas (LPG) due to rising security costs. Speaking at a National Assembly’s Standing Committee on Petroleum meeting, he highlighted that these increased costs are compelling several major companies to leave Pakistan.
Current Gas Usage and Economic Disparities
Dr. Malik noted that only 27% of the population uses natural gas, with just 3% relying on LPG. He pointed out the cost disparity, where local natural gas costs $10 per unit, compared to imported Liquefied Natural Gas (LNG) priced between $8 to $9 per unit.
Recommendations for Future LPG Transition
Committee member Asad Alam Niazi mentioned the reliance on LPG in neighboring countries like Bangladesh and India. He suggested that Pakistan may need to consider a similar transition. “If the ministry is working on this transition, it’s a positive step,” he said.
Concerns Over Hazardous Metals in Fuel
The meeting also addressed concerns about the use of hazardous metals to meet Euro 5 fuel standards. Committee Chairman Mustafa Mahmood expressed worries about the associated health risks and the committee’s intention to eliminate these metals from fuel supplies.
Calls for Refinery Upgrades and Fuel Price Deregulation
The committee members emphasized the need for upgrading refineries and called for the deregulation of fuel prices to foster a more competitive market environment.
