The New Nation - Internet Edition

A HIGHLY placed official of the government is reported to have argued in favour of another round of gas price hike. He disclosed, the country at present is experiencing a gas shortage of about 200 million cubic feet per day (mcfd) that keeps power generation low by 700 megawatt. It is possible to extract additional seven trillion cubic feet of gas from the existing gas fields. This however, involves investment of about US$8 billion. International oil companies would not be interested to invest such a huge amount of money unless gas price was increased, the highly placed official said. The prices of fuel oil and gas were increased from the beginning of the current fiscal year in line with oil price hike in international markets.

Fresh thinking on gas price hike has come at a time when prices of fuel oil have been reduced in the wake of fall in oil prices internationally. The authorities will thus find it difficult to justify gas price hike. The argument of attracting IOCs is not likely to appeal to the people. Gas price hike would increase costs of power generation and fertiliser production and add to the cost of transportation and cause price hike of essentials. All these aspects would have to be assessed properly before taking such a decision.

The government should not yield to any pressure. BAPEX has the expertise to explore gas. It should seriously think of reducing dependence of foreign companies and start the process of strengthening the state-owned company. Increase of gas price will affect the whole economy. Thoughts on gas price hike should be backed by adequate analysis of its implications. The question of energy security should be carefully examined. Other options like coal extraction for solving power crisis should be explored.