CNG association wants a piece of tariff cut

Says reduction has revived many sectors, should be extended to CNG sector as well

ISLAMABAD: Following the government’s decision to cut tariff for the industrial sector, the All Pakistan CNG Association (APCNGA) on Monday asked for a piece of the relief as well, requesting a cut in gas price for the CNG sector.

The Economic Coordination Committee (ECC) reduced the gas tariff for industrial consumers by Rs200 per million British thermal units (mmbtu), a move meant to make it competitive. The CNG sector says it was denied the same benefit, the APCNGA said in a statement.

“The reduction in gas tariff has revitalised many sectors including the fertiliser industry but the CNG sector was kept out of the list,” said APCNGA Central Chairman Ghiyas Abdullah Paracha.

He said that there is now a narrow difference between the price of petrol and CNG, which has reduced the latter’s consumption. However, a reduction in gas tariff could mean cheaper CNG and provide some relief to the sector, added the statement.

He said that the price of natural gas has been reduced from Rs600 per mmbtu to Rs400 per mmbtu across the country for industrial sector therefore the CNG sector should also get relief of Rs200 per mmbtu. It will also promote the use of CNG in new cars, which will have a positive impact on the overall environment in different urban centres, he added.

Paracha said that APCNGA is making a proposal for the government to allow installation of new lightweight gas cylinders in new cars which will improve the efficiency of the vehicles.

Published in The Express Tribune, December 6^th, 2016.

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