According to the CNG Dealers Association of Pakistan and CNG Station Owners Association of Pakistan, this step will render thousands jobless and worsen the law and order situation. Representatives from both associations, Abdul Sami Khan and Malik Khuda Baksh, while speaking at a press conference on Monday at the Karachi Press Club, said that the increase in CNG prices had put owners and dealers on edge. “The CNG is a local product and if we stop supplying it to over four million users then it will create a law and order situation as well,” Khan said. Buksh said that the petroleum ministry was promoting LPG and that such measures would result in the closure of businesses and compel people to come on to the streets in protest. CNG prices were currently 45% less than the price of petrol, but by replacing it with LPG, people would lose the economic benefit of using this fuel. They commented that Rs300 billion had been partially raised through bank loans and invested in CNG stations. “If the CNG industry is partly or completely closed down, the loss to the investors will be phenomenal and will cause banks to default,” they said. CNG industries in America and India were promoted and handsomely subsidised. Khan said that according to a survey, pollution had gone down by 61% in Karachi and Lahore and that by replacing this product, the environment would be harmed.
Published in The Express Tribune, May 29th, 2012.
COMMENTS (8)
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LPG is only the solution. please remain CNG for the manufactring units of Pakistan. LPG is good while cng causes great disturbance for climate.
@Shyam: U r right, but India has developed the CNG sector for vehicles in a very organized manner, with imports of LNG to meet the shortfall in local production. In Pakistan no such planning was done in advance, and the whole CNG sector was developed in a haphazard manner without considering the undue stress on limited gas reserves. Till date the entire demand for natural gas and CNG is met from Pakistan's own reserves, and hence we have shortages of gas to essential sectors like fertilizer and power. So replacing CNG with LPG is the only option for Pakistan for the time being.
In UK while houses and industry has access to natural gas, only LPG is available for vehicles still cheaper than petrol. Around the world is LPG not CNG allowed. only CNG/LPG pumps should not be allowed, only stations with other fuel should have this added facility. CNG drive without any direction and planning ended up in this situation where we ran out of gas as we are the largest CNG users in the world.
Gas to power generation and industry will make units run and create jobs at the lower end and boost exports. Thats where its needed! Though long term solution to energy crises, is to diversify our needs based on local fuel and resources not imported furnace oil or gas. Dams, nuclear, solar, wind are needed at large scale to feed power hungry economy and people.
@Salem
where in the world now natural gas is used for transport
All commercial vehicles in Delhi have to be CNG based. Even cooking gas we use is Piped Natural gas (PNG) though underground pipes directly to our homes.
LPG is the way forward!!!! CNG has been a disaster for the country. Its time we move forward and stop this racket of CNG blackmailing!
High time we replace use of CNG and divert natural gas to power generation.. It has more economic impact and benefit.
LPG kits are 40-50% cheaper than CNG kits..
LPG will still be cheaper then Petrol and of course more cleaner.
Once subsidies on CNG is removed it will not as cheap as its now as LPG is not subsidized fuel
Factually incorrect statement by CNG association.. No where in the world now natural gas is used for transport especially when it can be used for higher value industries where economic impact is higher such as manufacturing, power generation..
CNG is cheaper because its subsidize where LPG is not. Without subsidy CNG will not be as cheaper to LPG as its now.
LPG tanks and kit is 30-40% the price of CNG kits also.
Its high time we gradually replace CNG and use our natural gas for power generation
there are number of large deposits of coal present in pakistan by which we can produce electricity for about two hundred years . why dont we use that coal .affording peteroleum in this situation when pakistan s economy is almost zero is impossible