(Bloomberg) -- Pakistan aims to tackle a looming fuel supply crunch by encouraging the use of electricity over natural gas.
High overseas natural gas prices have forced the government to ask consumers and businesses to switch to electric appliances where possible to save gas for industries that require the fuel. Households are being urged to replace gas heaters with currently costlier electric ones.
Gas only makes up a quarter of Pakistan's power mix, so the government hopes incentives to use electricity over gas will help to conserve the fuel. The cabinet approved a plan on Wednesday to provide subsidies for consumers to encourage increased power consumption from November to February.
Liquefied natural gas prices from Europe to Asia are trading near record-highs as supply has struggled to keep up with the post-pandemic demand rebound. That's forced Pakistan to pay the most ever for spot LNG shipments, while the government might even forgo purchases over the next few months.
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