Pakistan and Bangladesh are now opting for the expensive and dirty diesel to generate power as the nations struggle to secure liquefied natural gas (LNG) shipments following a supply crunch due to Russia's invasion of Ukraine. In January, Pakistan’s diesel-based power generation surged to the highest in seven years whereas the LNG-fired output dropped to the lowest in two years, as per official data compiled by Arif Habib Ltd. “It’s likely Bangladesh and Pakistan will need to continue to use more diesel and oil in power generation,” he added. This would result in a potential rise in the power costs in South Asia as well in government subsidies to the sector, as well as slow down the pace of the economic recoveries. Also read: Additional Rs3.10 slapped in February power billsThis is evident from the fact that fuel costs in Pakistan doubled in January, compared to a year ago.

Source: The Express Tribune March 03, 2022 06:25 UTC