Sinking CNG sector needs price deregulation for survival


Lahore: Astoundingly today, Compressed Natural Gas (CNG) costs more than petrol after recent dwindle in petroleum prices. Now petrol is being offered at Rs 70.29 per liter.

Central Chairman All Pakistan CNG Association (APCNGA) Capt. (Ret.) Shuja Anwar told News Lens Pakistan that since August 31, 2014, petrol price has been reduced by PKR 37.68 per liter, but the price of CNG did not fluctuate. “We are going through very tough circumstances. Since winter, CNG has already become an extinct commodity and an investment of Rs 400 billion witnessed no concrete outcome. The current decrease in petroleum prices disturbed us unprecedented,” he further stated.

Moreover, the representatives of APCNGA do not seem happy with the current inference in petroleum prices. One of the members of APCNGA, Ghayas Paracha, told News Lens Pakistan that government had promised to deregulate CNG prices to retain the difference between petroleum and CNG prices. “Government should develop a formula to maintain the disparity. Under these worrisome financial conditions, we have called for a meeting with Federal Minister for Petroleum, Shahid Khaqan Abbasi to convey our reservations,” he said.

On the contrary, some members of APCNGA and owners of CNG stations deem the existing CNG prices cheaper than Petrol. “Although CNG price seems more than Petrol, the latter is obtained in the form of liters while the former is sold in kilograms. Actually one kilogram CNG is equivalent to 1.5 liters of Petrol. However, circumstances for CNG sector will be annoying if the price of petroleum decreases to PKR 50 per liter. But, it is still tricky to make it understandable to the public because people always stare at the price board and it, of course, tells that CNG is now more expensive than Petrol,” the Former Central Chairman APCNGA Pervaiz Khan Khattak explained while talking to News Lens Pakistan. “The use of CNG in the light traffic vehicles, including rickshaws, was still favorable and its benefit ultimately trickles down to the masses”, he further added.

According to the State Minister for Petroleum and Natural Resources, Kamal Khan, the Ministry was trying to alleviate the concerns of CNG sector. “Government will definitely address the problems of our businessmen and investors. The petroleum prices have been decreasing very swiftly for the last couple of months making it cheaper than CNG. APCNGA has proposed a formula to regulate CNG prices for both zones. Hopefully, this sector will receive pleasant news from us very soon,” he told News Lens Pakistan.


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