Out of gas: CNG industry might pull down its shutters

Mounting prices and taxes may force the industry to cease operations.

KARACHI: Pakistan Compressed Natural Gas (CNG) Dealers Association Chairman Abdul Sami Khan announced on Monday that dealers will be left with no choice but to shut their business if CNG prices are increased in the upcoming budget. He added that an increase of Rs11.50 in Gas Infrastructure Development surcharge cess will make it unaffordable for the consumers. He said that if the industry closes down, 300,000 workers will become redundant fuelling the critical unemployment situation in the country.

Quoting a survey, he said that carbon emissions have decreased up to 61% in Lahore and Karachi due to the use of CNG. CNG being an environmentally friendly fuel, if disbanded, will significantly boost pollution levels. Khan apprised during the press conference that in India and United States, CNG is being promoted through offering handsome subsidies to consumers and producers.

CNG associations on Monday held press conferences at various press clubs all over the country including Peshawar and Karachi.

All Pakistan CNG Association (APCNGA) Chairman Ghyas Piracha told the media that the body has repeatedly requested the ministry of petroleum to revoke three days load shedding of gas and not to impose taxes on CNG sector. However, the ministry failed to respond therefore forcing the association to stage protests and take steps to save the CNG industry.

Piracha stated that the government seeks to promote Liquefied Petroleum Gas (LPG) in the country even though it is not feasible and it will take at minimum four years to install LPG kits in the CNG running vehicles. Piracha alleged that few influential people are promoting LPG businesses by importing substandard LPG in the country.

He added that APCNGA has given a comprehensive plan to the government to enhance revenue and to control the widening energy crises in the country.

Published in The Express Tribune, May 29^th, 2012.