Govt weighs phase-out of gas geysers, putting millions of households on notice
Proposal could affect around seven million consumers as authorities consider shifting households towards electric alternatives
In what could become one of the most significant changes to household energy use in Pakistan in decades, the government is working on a plan to phase out conventional gas geysers and halt their manufacture and sale, potentially forcing millions of households to switch to electric or other alternatives.
The proposal is being actively discussed by several government institutions and has moved beyond an initial policy idea, with officials involved in the process holding regular meetings to work out its regulatory and implementation mechanism, multiple officials familiar with the discussions told Profit.
Manufacturers of conventional gas geysers have already been informally conveyed the government’s intention to discontinue production and have been asked to consider shifting towards electric appliances, according to officials and industry sources. Manufacturers, however, have expressed reservations over the proposed move.
The proposed transition could affect around seven million consumers currently using gas geysers across the country, particularly in Punjab, Khyber Pakhtunkhwa, Islamabad, Azad Kashmir and colder northern and upper regions, where geysers have been a routine household appliance for decades.
The impact on consumers could be substantial. While the government is considering electric appliances as a replacement for conventional gas geysers, households switching to electricity could face significantly higher energy costs, particularly given the difference between household gas and electricity tariffs.
The additional expense could be particularly difficult for lower- and middle-income households that rely on gas geysers for hot water during winter.
The proposal is being considered as part of a broader effort to reduce household consumption of increasingly scarce indigenous gas and redirect available supplies towards industry and other productive sectors.
Officials said the National Coordination and Management Council (NCMC), a high-level body constituted at the Prime Minister’s Office, has held several meetings on the proposal. The Ministry of Energy, Pakistan Standards and Quality Control Authority (PSQCA) and National Energy Efficiency and Conservation Authority (NEECA) have been asked to examine steps required to discontinue the manufacture of conventional gas geysers.
According to officials familiar with the discussions, the immediate proposal is to stop the production and marketing of new conventional gas geysers, while the longer-term objective is to gradually remove the appliances from the market. Restrictions on the use of existing geysers could subsequently come under consideration as part of the transition.
Proposed regulatory measures include delisting gas geysers from PSQCA’s compulsory-items regime and withdrawing relevant licences and no-objection certificates issued by NEECA. Such changes could make the continued manufacture and marketing of conventional gas geysers increasingly difficult and eventually remove new units from the formal market.
The move would mark a sharp departure from the government’s earlier policy of making gas geysers more efficient rather than eliminating them. In recent years, authorities have promoted measures including conical baffles, timers and other efficiency devices to reduce gas consumption by existing appliances.
The proposed phase-out is being discussed against the backdrop of declining indigenous gas production and a persistent gap between supply and demand. Household gas consumption rises sharply during winter as consumers increase the use of geysers and space heaters, putting additional pressure on the system.
Officials involved in the process believe reducing the use of gas geysers could generate significant savings in winter gas consumption and make additional supplies available for industry and other productive sectors.
Replacing gas geysers with electric appliances, however, could create a new challenge for consumers by shifting rather than eliminating energy costs. Households would have to bear the cost of purchasing new appliances as well as potentially higher electricity bills, while manufacturers and retailers would also have to restructure an established market built around gas-fired appliances.
The proposed policy could therefore have implications beyond the energy sector. The domestic geyser industry includes manufacturers, distributors, retailers, technicians and workers whose businesses have developed around the widespread use of gas appliances.
Industry sources said manufacturers had invested heavily in production facilities and maintained stocks of finished products and components. An abrupt policy change could leave them with unsold inventory and stranded investments, besides affecting businesses and workers associated with the sector.
At present, storage gas water heaters and geysers remain covered by Pakistan Standard PS 4858 and are included in PSQCA’s compulsory-items regime, under which manufacturers are required to comply with prescribed standards and conformity requirements.
NEECA’s mandate also provides for measures aimed at improving energy efficiency and restricting inefficient energy-consuming products. Any move to phase out conventional gas geysers would therefore require changes to the existing regulatory and licensing framework.
For millions of households, however, the central question would be what replaces an appliance that has been part of everyday life for generations.
In colder parts of the country, where winter temperatures remain low for prolonged periods, gas geysers are often considered a basic household necessity rather than a discretionary appliance. A transition to electric water heating without affordable alternatives or targeted support could therefore place an additional financial burden on consumers.
Officials said consultations with relevant ministries, regulatory authorities, gas utilities and manufacturers were continuing and that the final mechanism could still change.
