Home generator sales remain depressed on high prices, low gas pressure

KARACHI: Despite the unbearable longer duration of electricity load-shedding across the country, the sales of household power machines remained depressed mainly due to high prices and low gas pressure in addition to shrinking purchasing power amid skyrocketing food and utility prices.

In contrast, the imports of power generating machines rose to $113 million in May against $79.5m in April. However, the overall arrivals depicted a drop of 10pc to $1.429bn in 11MFY22 from $1.587bn in the same period last fiscal year.

Stakeholders in the markets said the figures in billions of dollars mainly cover imports of huge industrial generators rather than home generators.

They said various industries, mainly the export-oriented textile sector, had brought in huge machines to ensure uninterrupted power supplies to meet export commitments. Besides, all big residential schemes and high-rises also install large-capacity generators to ensure smooth power supply in case of electricity failure.

Tahir Aman of Aman Sons in Lahore said, “Our daily business has been merely five to seven per cent which should have been at least 50pc because of seven to eight hours load-shedding in low- and middle-income localities of Lahore.”

He said buyers are not turning up for portable generators of one to six kVA (petrol version) as they are more concerned about soaring food prices and utility charges. Besides, low gas pressure has also hampered the sales of generators.

However, Mr Tahir said sales of industrial generators have been going brisk which is also evident from positive growth in large-scale manufacturing.

Owner of Sikandar and Co, Sikandar Shahzada in Karachi said one kVA Chinese branded generator now costs Rs48,000 as compared to Rs24,000 two to three years back. The 2.3 kVA machine is priced over Rs70,000 as compared to Rs42,000-45,000, while 3 kVA sells at Rs78,000 versus Rs50,000-55,000. The 6 kVA generator is available at Rs170,000 as compared to Rs90,000 two years back.

He said massive rupee devaluation and higher freight rates had made an adverse impact on domestic prices.

“Our sales are highly depressed as the huge jump in diesel and petrol rates has put an additional burden on the pockets of consumers in addition to the already rising cost of living,” he said.

Pakistan Machinery Merchants Group President Khurram Saigal said that the load-shedding is being carried out in low- and middle-income localities where the majority cannot think of purchasing high-priced power machines as they have other burgeoning expenses to meet.

Even though running petrol generators on gas costs less but low gas pressure does not allow the generators to run smoothly. Besides, many people cannot afford soaring petrol rates and they cannot run the machine for more than two hours, he said.

Mr Khurram said the import of residential and SMEs type generators are 80pc down in the overall import figures of power generating machines.

He said people especially in rural areas are fast switching to solar panels to meet their daylight requirements.

He urged the government to give some sales tax and customs duty exemptions on the import of home generators so that it could bring down prices.

Site Association of Industry President Abdul Rasheed said that several new industrial units have been set up in the last two to three years thus creating additional requirements for power generators and machinery to meet export commitments.

Uninterrupted gas

He said industries need one megawatt to five-megawatt power generators of gas or diesel versions. Running power machines on diesel is no more feasible even for industries after a sharp increase in its prices. T The cost of these generators ranges from $100,000 to $1.5m.

He said due to a lack of timely import decisions, Pakistan is facing a severe shortage of gas and RLNG. As a result, exporters are facing problems in meeting their foreign commitments.

Export-oriented units need economical gas/RLNG instead of power to run the industries, while general industries require a regular supply of electricity.