Promoting vehicle fuel: CNG industry demands removal of import duty

Claims OGRA has allowed import of lightweight cylinders, latest kits

ISLAMABAD: All Pakistan Compressed Natural Gas (CNG) Association Chairman Ghiyas Abdullah Paracha has said the industry has requested the Ministry of Petroleum and Natural Resources to waive the 35% duty imposed on the import of latest CNG kits and cylinders.

"We have got approval from the Oil and Gas Regulatory Authority (Ogra) for the import of lightweight CNG cylinders and latest electronic fuel injection (EFI)-compatible kits," Paracha said, adding the CNG industry was still waiting for the government's reply.

He was of the view that the duty was imposed because of natural gas shortage in the country as the government wanted to bring down the consumption of gas in vehicles. However, he argued that with the import of liquefied natural gas (LNG) into the country, the supply shortage had eased and now there was no need to restrict natural gas supplies.

Paracha pointed out that as the government wanted to revive the CNG industry, the proposed duty-free import of CNG equipment would aid consumers in switching to the inexpensive and environment-friendly natural gas as a fuel for cars.

The CNG association has finalised arrangements to initiate import of lightweight 22kg CNG-compatible kits and cylinders for 660cc to 3,000cc vehicles.

"Two companies from Italy and Singapore have agreed to supply EFI-compatible CNG kits and new lightweight cylinders to Pakistan," he said, adding the removal of duty would increase equipment affordability for the consumers.

"The latest equipment will be highly beneficial for the CNG consumers as it will help achieve 8% to 10% more mileage from their vehicles, thereby reducing fuel expenses," Paracha claimed.

He said the lightweight cylinders would have the same 8kg CNG capacity, similar to that in the old cylinders, adding the new technology would be maintenance-friendly.

"It will be cost-effective, especially considering the high prices of vehicles in the country," he said, cautioning that actual price of the equipment would be determined once it was imported.

Published in The Express Tribune, August 5^th, 2017.

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