At long last SAPM Nadeem Babar has been asked to step down over last year’s fuel crisis.
In summer 2020 there was a man-made petroleum crisis followed by a man-made gas crisis causing billions of rupees of losses to the national exchequer, raising prices and making the lives of millions of common people miserable.
There should have been no reason for the big rise in petroleum prices in May because in March oil prices fell to their lowest level in 17 years, dropping below $25 a barrel in the international market. In April the US oil benchmark crashed below $0 a barrel to mark a historic plunge. This was the time to import oil in bulk and store it for coming months. Curiously the energy ministry directed all Oil Marketing Companies (OMCs) to stop imports of petrol, claiming that they had sufficient inventory of petroleum. The result: In May diesel was sold in Pakistan at Rs 80.10 per litre while going by its international price it should have been available to local customers at Rs16.37 per litre.
The issue was raised by the media which criticized the ban on imports as well as the failure to maintain adequate reserves. The government rejected the criticism as propaganda by elements hostile to the PTI.
In winter came the gas crisis. Winter being the peak season for gas demand, arrangements are made for LNG imports for December, January and February in advance. Failure to make advance arrangements means higher costs. And that is exactly what happened. In October SAPM Nadeem Babar gave the impression that the country would not face a major gas shortage this winter. The opposite took place as the PTI government had failed to float tenders at the right time. Gas had to be purchased at a time when its prices had peaked. While the government was busy alleging corruption and malfeasance against its predecessors in the long-term supply agreement with Qatar, it lost up to $200 million by mismanaging its LNG imports for the winter season.
The Prime Minister continued to shield his special assistant for nearly a year while the sycophants acting as his spokespersons poked fun at mediapersons for exposing the Energy Ministry. One wonders whether the action is due to a change of heart in the PM or dictated by his mentors.
