www.chitraltimes.com

LOOMING ENERGY CRISIS: PETROL DISASTER

BY: SAFIN THARANI

The world is now on the advanced level. Each year scientific technology shows a terrific unbelievable change. These all Advancement is brought in our country, by invention of new machinery, which helps in meeting basic needs of life, as things are prepared through industrial processing.

Primarily the point of fact is that these all machines are run by energy consumption of fuel, coal or natural gas. Another fact is that 90% of energy is supplied by these resources (Geological Survey of Pakistan, 2006). However, according to my knowledge, till date nobody had highlighted the importance of natural resources in terms of technology. Nowadays the demand of oil is increasing and it is consumed in a great amount each year world wide, where else production rate of oil is decreasing. That is why; the rates of oil are being higher abruptly each day. My contention of writing this paper is raising rates of fuel, is not only impacting on local public living in Pakistan but it is also impacting on overall economical condition of country as well.

Before initiating formal part of petrol crisis impact, its better to understand certain facts and figures related to petroleum oil. The Budget of 2007 to 2008 states "Oil and Gas prices have been reduced, Petrol from 57.70 to 30.32, Diesel from 38.73 to 15.45 and LPG / CNG from 35.32 to 10.21 per KG, which is approximately a 50% decrease in the oil prices"(Buzzvines, 2007). Despite of fact budget is totally running out this year, as the new government had changed the prices and tax rate of petroleum oil products that is Rs.65 per litre approximately. Due to shortage of oil in our country, prices are suddenly changed up to Rs.10 on per litre within last two months. It obviously illustrates the loss of Rs.35 approx per litre. However, thousand of barrel oil is used every day which is causing loss in billions. In public, nowadays it’s a hot issue and rumor believed that petrol rates will increase up to Rs.75 per litre.
One of the reasons behind increasing the prices of fuel in Pakistan is that:

For decades the Pakistan economy remained largely isolated from the global economy, Shoukat Aziz era has accompanied with the opening of economy via trade linkages. This result in slightly harmonization of Pakistan's economy with that of world. (Economic Report, 2006).
It clearly illustrates that to meet the global criteria of increasing oil rates, it is necessary for government to raise the prices of oil in Pakistan as well accordingly. However, it has been burdenizing on Pakistani Public as Americans and Euro zone interest are defended with rupees in Pakistan. (1$ = 62 Rupees).

The cause behind increasing rate is to meet the challenges of millennium standards and advanced requirement of technology. Oil products are over utilizing nowadays in domestic and commercial life especially. Additionally, another fact is that in Pakistan electricity is also generated by nuclear powers which run through oil (23.5%). However, mostly petroleum products are been utilized in the transportation (61.5%) (Petroleum Policy, 2001).

Another reason for shortage of petrol products world wide is that Iraq, Kuwait and Saudi Arabia are the three main sources of oil worldwide. During the Gulf war between America and Iraq, firstly, Sadam Hussain utilized oil tankers for the self protection. He burned the oil tankers on Iraq Border so it can provoke much smoke, so that the laser of American army cannot reach Iraq. Secondly, after American Army invaded, they blasted most of the oil reservoirs, to inflame endless fire in Iraq. The American Conservative, March 10, 2008 states
After invading one of the most petroleum-rich countries on earth, the U.S. military is running on empty... In 2007 alone, the U.S. military in Iraq burned more than 1.1 billion gallons of fuel.

These damages not only impacted on the Iraq but it also affected the oil production world wide. Moreover, it is predicted that if the third world war will occur that will definitely linked with water or oil shortage in world.

After this war, rise in oil rates had badly impacted on Pakistani public's life. A normal person life has now changed into miserable condition. Raising rates of fuel is affecting each domain of life that is on food products, household utensils, transport, medicines & health and most dominantly on economic condition of family. Each product which is supplied through the transportation (e.g. wheat flour from agriculture field to urban area shops) had become so much expensive that a poor person can only dream of buying it. However, it is another reality that Pakistan is an agriculture country but still we are facing such situation. Moreover, people not only who utilize their own transport are facing expenses but those who travel through vans and buses are paying high rents. Additionally, people are facing the challenge of electricity shortage. Overall, it impacts on individual's economy and person is unable to meet the requirement of daily living especially for the people who belong to lower socio-economic class.
In contrast, it is also impacting on economical condition of Pakistan. Especially in terms of import and export of goods Government of Pakistan has to face many challenges and competitor countries are getting advantage of it. Firstly, export e.g. cotton is being transported via a shipment which requires barrels of oil. If we sale the cotton in same price than we will get less profit due to high rates of petroleum and if we increase the rates of cotton, we might face challenge in terms of passing the tender and competitor in market.

Strategy of bio fuel technique, Pakistan produces around two million tons molasses annually out of which during the last year 1.45 million tons were exported at a nominal rate of $35 per ton, earning only $47 million. According to industry sources, more foreign exchange can be earned if the molasses is converted to more value-added products, like ethyl alcohol (ethanol). If the entire two million tons of molasses are processed in distilleries, ethanol production will be over 500 million litres (0.4 million tones), and on exporting the same at an average price of $360 per ton, the country can earn around $144 million. Thus, there is a glaring difference in earning foreign exchange. The industrial alcohol can be converted into fuel ethanol by using molecular sieve technology with a capital expenditure of $1.5 million and in a period of five to six months (Niaz, 2006).
Moreover, if we convert our power plants running on furnace oil into indigenous coal as Pakistan is fourth largest coal reservoir, only this could save the 30 million barrels of oil. By this way, Pakistan can become self sufficient in fuel production.

Overall, I would like to conclude that fuel serves as the basic engine of life of human being. Increasing rates and shortage of fuel is impacting negatively on each aspect of daily living of individual in Pakistan. Moreover, Government of Pakistan is facing many challenges due to this shortage. However, there are certain solutions of each problem government should utilize such strategies for the betterment of our country and become self sufficient in fuel production.