Global crunch likely to double local gas prices

The full force of the global gas crunch will hit home in April: domestic gas prices will double, driving up costs of cooking, commuting and electricity, while increasing the fertilizer subsidy bill for the government.

An accelerated recovery in energy demand from the covid-lows coupled with inadequate supply expansion in 2021 vaulted prices to record highs, sending shockwaves through the global economy. Domestic industries are already paying higher prices for LNG imported under long-term contracts where rates are linked to crude oil and have sharply cut purchases from the spot market where prices have been berserk for months.