CNG prices set to rise by up to Rs22.33 per kg

Decision comes one day after 40% hike in natural gas price

KARACHI: Compressed natural gas (CNG) dealers announced on Friday that they would increase the fuel price by up to Rs22.33 per kilogramme with effect from Saturday following government’s decision on increasing the natural gas price.

“Dealers have decided to pass on the impact of gas price hike to end-consumers instead of going for a shutter-down strike,” CNG Station Owners Association of Pakistan President Malik Khuda Bux told The Express Tribune.

The option of staging a strike was considered at various meetings of different CNG associations in order to protest against the increase in natural gas prices, but most of the dealers opposed that, meeting participants said.



Dealers increased the CNG price in the range of Rs16.30 to Rs22.33 per kg and it now stands between Rs98 and Rs104 compared to Rs81.70 per kg in Sindh on Thursday.

The government has revised upwards the gas supply price for CNG fuel stations by 40% to Rs980 per million British thermal units (mmbtu) from Rs700 earlier, according to the Oil and Gas Regulatory Authority’s (Ogra) notification.

All Pakistan CNG Association (APCNGA) Chairman Ghayas Paracha said Khyber-Pakhtunkhwa (K-P) and Balochistan-based dealers had increased CNG prices in the range of Rs109-115 per kg from Rs96 earlier.

In Punjab, the price of CNG remained unchanged at Rs125-126 per kg as the increase in natural gas price for fuel stations did not apply to dealers in the province who consumed the imported liquefied natural gas (LNG).



Paracha demanded that the government end discrimination against the CNG fuel industry. It kept gas price unchanged for the textile industry at Rs600 per mmbtu, increased it by 20% for other industries and jacked it up by 40% for CNG dealers.

“The government has passed on the burden of textile industry to CNG fuel dealers,” he alleged.

Paracha pointed out that the government kept petrol price unchanged to provide relief for the people, but increased the CNG price which was an environment-friendly fuel and widely used by consumers.

There are around 2,200 CNG filling stations and over two million cars and public transport vehicles run on the fuel in the country.

Published in The Express Tribune, October 6^th, 2018.

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