Gas load management to boost industrial productivity

LAHORE: The government took a bold decision to cut gas supplies to domestic consumers during the approaching winter in the Punjab, which – albeit invoking criticism – will boost industrial productivity because of uninterrupted fuel availability to manufacturing units.

Those who use gas as kitchen fuel are the most influential segments of the society. Piped natural gas is available to only 22 percent of the households in the country. Domestic gas connections are mostly available in the urban centres. The consumers are mostly affluent and middle class. It is also the most vocal segment of society. 

The literacy rate of gas consumers is also relative higher.  Domestic gas rates are extremely low, averaging Rs230 a month during summer. Among the three utilities, electricity is the most expensive, followed by water and lastly natural gas.

For 78 percent of the population devoid of natural gas, kitchen fuel is one of the major monthly expenses as all the alternate fuels are very expensive. If they use liquefied petroleum gas (LPG) cylinder, the average cost -- even with a cautious use – comes around at Rs1,000/month. This is four times more than natural gas cost incurred by 22 percent of the population. The electricity and water bills of these consumers are lower than the expenses of kitchen fuel.  

Unfortunately, consumers lavishly use gas, keeping burners on even when they are not heating anything. They use heaters and geysers that are highly inefficient. The efficiency of these gadgets is 25-30 percent, which means that 75-70 percent gas is wasted. Most of this wastage occurs during the winter months that enhance gas shortages. They pay no heed to the appeals of government with regards to conservation.  

The most excessive gas consumption occurs during winter nights. Therefore, the government has decided to suspend gas supplies during the peak hours in winter months. Most of the cooking is usually over by 10 pm, particularly during winter. That will the government muster courage to implement its decision is yet to be seen.

The influence of domestic consumers put them on the priority list. In competing economies – like Bangladesh and India – the top priority is given to the manufacturing sector that is the provider of jobs to the masses.

Each government in these countries adheres to this policy because they know that smooth running of industry will ensure economic wellbeing of the people. Public appeasing policies are usually counterproductive in the long run.

The influential segment in Pakistan angrily reacts to all such development measures. Vehicle owners, for instance, criticised the Lahore’s metro project, saying it was wastage of money. They argue that the government could have spent the amount on improving health and education indicators instead of building the mega project. 

Metro was built at a high cost, but it is facilitating more than 150,000 industrial workers a day to commute from home to factory and vice versa in record time.  

Before the Metro became operational the factory workers used to cover the single way distance from Shahdara to Gajumata in around 150 minutes. Now, they could reach a factory in 50 minutes through Metro and at a very low cost. Workers can now spare two additional hours for their family. They are also not tired when they travel in fully air-conditioned and comfortable buses.

The affluent segment never criticises the regular upgrade of city roads because they use them to commute to their offices. They have no objection when the government lowers duties on luxury cars and even allows import of more than three-year old luxury cars. They are against proper evaluation of imports, because lower values reduce the duty they have to pay on their imports.