Socioeconomic Consequences and Analysis of Sui Gas Load Shedding at Household Level in Faisalabad

Abstract

Natural gas plays a vital role in the growth and development of every country globally, as all economic and human activities depend on it. Industrialization accompanied by economic development and improved standard of living has enhanced the demand for natural gas in many fields. The consumption of sui gas has spiked since the last decade in Pakistan. No addition has been made to improve the supply of sui gas, so a gap between the demand and supply of natural gas is widening in the country. The present natural gas load shedding resulted in massive losses to the economy and created anxiety for families at the household level. The present study was designed to identify the socioeconomic consequences and problems of sui gas shortfall in households. The results of the current study revealed that sui gas load shedding badly hampered household activities. Results indicated the average bills of sui gas more in winter than summer. Average electricity bills were more in summer than winter. As their income increased, they consumed more energy using vehicles, coal, generator, and geyser, which caused an increase in their average monthly expenditures. It was found that there was huge gas load shedding up to 20 hours in winter and in some areas people faced 24 hours sui gas load shedding, in order to overcome the situation households were used alternatives like a cylinder, oil stove, wood fire and people also preferred to purchase food from markets for their breakfast, lunch and dinner needs that increased their expenditures. These alternatives were caused to create health issues, unrest among the families and unemployment. To avoid these issues and for uninterrupted sui gas supply, households are willing to pay extra tariffs. The results of regression analysis were indicating that family size, income, heater and geyser had positive and significant impact on gas expenditures. There was positive and significant relationship between the willingness to pay of the households and income, alternatives cost, LSH, health and FD. In contrast, the result of binary logistic model showed that explanatory variables LSH, income, EOJ and GJT are positively and significantly influencing the use of alternatives expect CGST.