Recent Price Hikes to Make CNG Costlier Than Petrol

Industry

The All Pakistan CNG Association said on Friday that the price of CNG has had an unprecedented hike contrary to the vision of Prime Minister Imran Khan.

It said that despite buying the costliest LNG, additional taxes have been slapped on the CNG sector, and this will make it costlier than petrol for the first time in the history of Pakistan.

The Group Leader of the All Pakistan CNG Association (APCNGA), Ghiyas Abdullah Paracha, said that the price of gas will increase in October and November if the process of buying expensive LNG continues.

He said in a statement issued today that the sales tax and customs duty have been revised upward, and this will increase the price of CNG by Rs. 18 per liter in Punjab and by Rs. 28 per kg in Sindh. The high price of CNG will make it unattractive for consumers and will result in the bankruptcy of the industry, leaving hundreds of thousands of people jobless.

Paracha added that the dollar is gaining strength against the local currency which is also contributing to the cost of fuel, which is why the government should act swiftly to save the industry from collapsing.

Following the notification of the Oil and Gas Regulatory Authority (OGRA), the price per liter of CNG will jump to almost Rs. 125 in the Punjab and to Rs. 192 in Sindh, which will be an unbearable blow to the industry. It will also waste Rs. 450 billion investment and will result in a new and devastating wave of inflation.

He said that a delegation of the APCNGA has met with the concerned officials and apprised them of the emerging situation which will result in the closure of CNG stations in the two provinces.

Paracha also said that the government is giving a subsidy in billions to other sectors, which has increased their burden fourfold, while increasing the price of CNG is discrimination. He said that the government has reduced the petroleum levy to zero; sales tax has also been reduced on petrol; the taxes on LPG have also been relaxed, but the taxes on CNG have been increased. He added this is all beyond understanding and could result in unprecedented inflation.

The government should immediately intervene and take steps to keep the price of CNG affordable as the leaders of the APCNGA are holding meetings to find a solution to the problem.

Source: Pro Pakistani