Industry

Up to Rs22 hike in the price of CNG from July 01: APCNGA

Recent gas price hike a record in the last ten years: Ghiyas Paracha

Raise unacceptable, the Government should resolve the issue through consultation.

Karachi, July 01, 2019: The All Pakistan CNG Association on Sunday said notification for a 31 percent hike in the tariff of gas has been issued which will translate into an increase of Rs21 to Rs22 in the price of CNG in the provinces of Sindh, Khyber Pakhtunkhwa, and Balochistan.

The province of Punjab will remain immune from the upward revision in the tariff of natural gas as the CNG stations in that province are using imported RLNG, it said.

According to the notification, the price of natural gas for the CNG sector has been increased from Rs980 per mmbtu to Rs1283 per mmbtu, the highest during the last decade, said Ghiyas Abdullah Paracha, Central Leader of APCNGA.

In a statement issued here today, he said that the formula for Sales Tax has also been changed which will increase the cost of economical fuel from Rs2.25 to 2.74 in different provinces.

Ghiyas Paracha said that new gas prices are unacceptable therefore the government should resolve this issue through consultations with the APCNGA and other stakeholders.

The decision will reduce the demand for gas, increase demand for petrol and add to oil import bill as well as environmental pollution, he said, adding that increased import of petrol will require foreign exchange which is not in line with the decision to save US dollars.

The decision is detrimental to the survival of Rs450 billion CNG industry which is providing jobs to million while it will increase transportation costs and fares and threaten budgets of poor rickshaw and taxi drivers.

Closure of the CNG industry will not only hit investments and jobs but also revenues of the government therefore it should be reviewed, he warned.

The leader of the CNG sector said that poor must be shielded, GIDC should be abolished and electricity tariff should be brought down.

The government can avoid closure of CNG industry and massive unemployment by accepting the APCNGA formula which will also help it save one billion dollars per annum, he said.

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