Govt restructures gas priority for industrial growth

Govt restructures gas priority for industrial growth

ISLAMABAD: The caretaker government has decided to change the gas priority order by placing the process industry at the top along with domestic consumers. It has also changed the priority order of the fertiliser sector by placing it in the second category along with the power sector.

Earlier, the fertiliser industry was placed in the third category. The export-oriented industry was placed in the second category in the old policy. However, the caretaker government has removed it from the second category and placed it in the fertiliser sector.

In the first category, the government had added domestic and commercial consumers, including tandoor and industry processing only. The power and fertiliser sectors have been placed in the second category, industry (captive power) in the third, cement in the fourth, and CNG in the fifth category.

Sources said that the issue was taken up before the prime minister. The Petroleum division had submitted a plan regarding the proposed revision in the gas priority order that was okayed. The issue was already taken up before the economic coordination committee (ECC) to change the gas priority order.

The members of the economic decision-making body had suggested amendments to the gas supply priority order with the objective of according top priority to the industry, which will help boost the industrialisation process in the country. Its members had argued that the merit order for gas supply had been distorted, as the domestic sector got first priority with no value addition. They underscored the need to amend the economic merit order by placing industries at the top, as they make value addition and bring revenue for the country.

It was pointed out that the government had already decided on the gas load management plan, wherein the provision of gas to domestic consumers would be ensured for eight hours a day during winter months. However, some policymakers warned against relegating residential consumers in the priority order cautioning against further reductions of gas supply.

Leave a Reply

Your email address will not be published. Required fields are marked *