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Govt to Double Gas Supply for Power Sector to Avert Massive Tariff Hikes

Apr 13, 2026 | Economy, Public Policy

ISLAMABAD (April 13, 2026) — Amid a critical shortage of imported Liquefied Natural Gas (LNG) and a looming summer demand spike, the federal government is moving on a “war footing” to double the domestic natural gas supply to the power sector. The shift aims to shield over 30 million electricity consumers from exponential tariff increases and crippling loadshedding as the regional conflict continues to disrupt global energy markets.

The Power Strategy at a Glance

  • The Surge: Gas supply to the power sector is set to rise from 85–90 mmcfd to approximately 160–170 mmcfd by early May.

  • The Trade-off: Diversions are being considered from households, the CNG sector, and potentially the fertilizer industry.

  • Cost Comparison: Running efficient plants on diesel costs Rs 50–54 per unit, compared to significantly lower rates for gas-based generation.

  • Conservation: Hybrid load management, including early market closures and 2–3 hours of daily loadshedding, is expected to continue.

The Minister’s Warning: Households vs. Power

Power Minister Awais Leghari issued a stark warning to the cabinet, noting that without this diversion, fuel cost adjustments (FCA) could more than double by May. Facing a choice between the “uproar of 7 million gas consumers or 30 million power consumers,” the government is leaning toward prioritizing the national grid to prevent a total economic stall.

Supply Enhancements & Constraints

Additional domestic gas has become available following the completion of a vital pipeline from the Bettani gas field in Lakki Marwat to Punjab. This infrastructure is critical because, without imported LNG, nearly 5,000MW of efficient power plants in Punjab risk becoming redundant or prohibitively expensive to operate on high-speed diesel.

Current Energy Challenges:

  • Hydropower: Delays in Tarbela T4/T5 and the continued closure of the 969MW Neelum-Jhelum plant have limited cheaper hydel options.

  • Alternative Fuel: While furnace oil stocks exceed 500,000 tonnes, the cost differential remains a massive burden on the national exchequer.

  • Fertilizer Risk: While the government aims to protect fertilizer plants, a wide price gap between local and imported urea (Rs 4,500 vs Rs 15,000 per bag) has raised fears of smuggling if production dips.

Summer Outlook

As peak summer demand is projected to hit 28,000MW—doubling the current requirement—the National Coordination and Management Council is overseeing the emergency allocation. Citizens have been advised to prepare for continued conservation measures, particularly during night hours when solar generation drops, as the state struggles to balance affordable rates with the reality of a global fuel blockade.

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