New Gas Connections Banned in Pakistan

LAHORE: The petroleum ministry has decided to impose ban on new gas connections, the ministry’s sources said.

The ban on new gas connections will be applicable at domestic as well as commercial consumers, according to sources.

The government had lifted the ban on gas connections in October last year to address the long-standing energy supply challenges.

Sources said that the new gas connections were being issued for the expensive RLNG with the gas bills of the new connections four-times of the earlier gas connections.

The Demand Notes fee of the connection was enhanced from Rs. 6,500 to 23,500 rupees. The consumers were being charged additional 25,000 rupees for providing connection on priority.

Thus, a gas consumer had to pay around Rs. 50,000 for a new RLNG connection.

The federal government had earlier decided that all new gas connections will be based on imported Regasified Liquefied Natural Gas (RLNG), which is significantly more expensive than the earlier natural gas connections.

According to the sources, the cost of RLNG-based connections was higher and RLNG tariff linked to international crude oil prices.