Govt gas decisions amid LNG crisis supported

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The Pakistan Economy Watch (PEW) on Wednesday supported the decisions of the government to tackle gas shortages amid a global LNG crisis.

Record hike in the price of super-chilled fuel due to biting winter and other issues has prompted many global suppliers to default on their commitments and Pakistan is no exception, it said.

Following the refusal of two suppliers to provide LNG to Pakistan for February the government has sought urgent tenders for gas deliveries to fill the gap.

The government has suspended gas supply to inefficient captive power plants to cope with the gas shortages which is a right decision, said Dr Murtaza Mughal, President PEW.

He said that not only the LNG spot prices have spiked but the freight rates have also witnessed a sharp rise as rich nations are importing high quantities of gas which has added to the problems of gas importing nations.

Dr Murtaza Mughal said that Pakistan should adopt a model of long term purchase contracts and spot purchases.

Long term contracts would ensure continued supply in hard times while spot purchasing will help cut gas import bill when the price of gas is at the lower side in the international market, he said.

He noted that the government should frame a long-term energy policy to shield the masses and business community from the high price of energy, fluctuations, disruptions and highhandedness of LPG mafia.

In: Pakistan Economy WatchAuthor: pakistaneconomywatch