Govt raises CNG prices by Rs5.36

Prices raised by Rs2.1 per Kg in Region I to Rs76.35. Prices raised by Rs5.36 in Region II to Rs71.5.

ISLAMABAD: In a bid to discourage the use of Compressed Natural Gas (CNG) in vehicles and off set the gas crisis, the  government on Tuesday raised prices of CNG by as much as Rs 5.36 per kilogramme (Kg).

The increase has been made on account of Gas Infrastructure Development Cess (GIDC).

Earlier, GIDC rate in region-1 was Rs 263 per million British Thermal Unit (mmbtu) and Rs200 per mmbtu in region-2. Now, the government has imposed a uniform rate of Rs300 per mmbtu in both regions causing a hike in CNG prices.

According to a notification the Oil and Gas Regulatory Authority (Ogra) on Tuesday, the price of CNG has been increased to Rs76.35 per kilogram from Rs74.25 per kg registering an increase of Rs2.1 per kg in Region I (Potohar, Khyber-Pakhtunkhwa, and Balochistan).

Similarly the consumers in Region II (Sindh, Punjab,and its areas excluding Potohar) would face hike of Rs5.36 per kg raising its price from Rs66.14 to Rs71.5 per kg.

The CNG industry has rejected the recent price hike claiming that CNG stations are already not getting enough gas and therefore increase in CNG price is unjustified.

Chairman All Pakistan CNG Association Ghyas Paracha said that CNG industry is also suffering due to gas load shedding and hike in the price of gas would add miseries of CNG industry.