The government is considering reallocating about 1.2 billion cubic feet per day (BCFD) of the fuel through wide-ranging changes in the allocation and consumption policy.
The expected policy changes include regularisation of illegal connections, ban on gas generators and fresh allocations for the transport and housing sectors.
The adjustments in gas allocation and consumption appear to have been planned to improve the financial health of the Sui Southern Gas Company and Sui Northern Gas Pipelines which are facing serious administrative and systematic challenges in controlling their system losses.
The proposed policy changes also seek to make the best use of gas consumption by existing consumers through tariff changes. According to sources, consultation with all the ‘stakeholders’ has been completed and the new policy is expected to be approved by Prime Minister Nawaz Sharif.
