CNG price in Punjab goes up by Rs3 per kg

Rates revised following sharp depreciation of the rupee

ISLAMABAD: Compressed natural gas (CNG) prices in Punjab have gone up by Rs3 per kg following sharp depreciation of the rupee against the US dollar in inter-bank market in the past few days.

After this increase, the new price of CNG in Punjab is Rs82.79 per kg.

"If the US dollar goes above Rs147, the retail price of CNG will increase further," cautioned Ghayas Paracha, Chairman of the All Pakistan CNG Association.

The CNG market has been deregulated following ban on the consumption of domestically produced natural gas in CNG retail outlets across Punjab. Other provinces, however, utilise local gas because of being the energy producers.

Under Article 158 of the constitution, the provinces have the first right of use of the gas produced in their areas.

Paracha said Sui Northern Gas Pipelines Limited (SNGPL) was charging higher bills for LNG supply as it calculated gas prices keeping in view the rupee-dollar exchange rate on the last day of a month rather than taking its average for the month.

"Therefore, SNGPL is sending inflated gas bills to CNG stations; higher prices will make the use of LNG in vehicles unfeasible," he remarked.

"We have proposed SNGPL to take the average exchange rate of a month for calculating the bills, but the company has not accepted the proposal," Paracha added.