Covid disrupts oil supply chain

Tarin forms body to address challenges faced by CNG sector

ISLAMABAD:

The Covid-19 pandemic has disrupted the global supply chain of petroleum products including liquefied natural gas (LNG), thus affecting prices, but the government is providing relief to consumers by keeping petroleum levy at the minimum level, said Finance Minister Shaukat Tarin.

In a meeting with a delegation of All Pakistan CNG Association on Monday, the minister was briefed about the challenges that the CNG sector was facing.

Association Chairman Khalid Latif pointed out that the global LNG price fluctuation coupled with local currency depreciation had made CNG relatively expensive compared to petrol.

Outlining the operations of the sector, he said that CNG was launched as an environment-friendly alternative to curtail the hefty import bill of gasoline.

“Over the last 15 years, around Rs450 billion has been invested in the CNG sector,” he said, adding that surging prices of CNG had dampened its demand among local consumers.

On the occasion, the finance minister constituted a committee comprising Federal Board of Revenue (FBR) chairman, Oil and Gas Regulatory Authority (Ogra) chairman, representatives of Petroleum Division and All Pakistan CNG Association chairman to address the challenges faced by the CNG sector.

Published in The Express Tribune, September 28^th, 2021.

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