ISLAMABAD:
The government announced on Tuesday that it will raise compressed natural gas (CNG) prices by up to Rs5.36 per kilogramme (kg) in a bid to discourage its use in vehicles. A notification was issued to this effect by the Oil and Gas Regulatory Authority (Ogra ) on Tuesday.
According to the notification effective from July 1, the price of CNG has been increased from Rs74.25 per kg to Rs76.35 per kg, registering an increase of Rs2.1 per kg in Region 1 – including Khyber-Pakhtunkhwa, Balochistan and Potohar.
Similarly, consumers in Region 2 (including Sindh and Punjab) – after an increase of Rs5.36 per kg – will be paying Rs71.5 instead of Rs66.14 for per kg of the CNG.
Ogra has approved this hike on the basis of Gas Infrastructure Development Cess (GIDC).
Earlier, the GIDC rate was Rs263 per million British thermal unit (mmbtu) in Region-1 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.
Excessive load-shedding has crippled the country’s CNG industry. CNG stations in Punjab get gas supplies just once a week whereas industry and power plants receive gas eight hours a day, which is inefficient.
The CNG industry has rejected the proposed hike on the grounds that CNG stations do not have enough gas and therefore the increase in gas prices has no justification.
The head of the All Pakistan CNG Association Supreme Council, Ghyas Paracha, said the CNG industry was also suffering due to load-shedding of gas and the hike in prices would add to the miseries of the CNG industry.
Published in The Express Tribune, July 2nd, 2014.
COMMENTS (7)
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I fall in region 2 and today when I was able to get some gas, price tag at station was showing 75.9/k.g. The CNG owners charge at their will and if the generator is on then this price goes further up by 10/k.g. Ironically, all the people in vicinity know that that particular station is running its generator by gas theft.
Discouraging CNG by increasing the prices is always better than the Govt intervention to restrict the use for a certain class. Let the natural law of demand and supply take place. . The problem arises when there are no alternatives available to people specially who face difficulty to afford. Mass transit programs are a must to discourage the use of personal vehicles CNG or Gasoline. You can imagine how much of import bill could be reduced if mass transit discourages the use of personal vehicles running on Petrol. . Bring some Mass Transit programs. Circular train where ever viable, Mass Transit Vans, Increase the Car Taxes for personal vehicles to encourage pooling. you ll start seeing the difference its gonna create
This is an other attempt by our fool-minded politicians for their personal gains. If they rally wanted to discourage the use of CNG then they should lower the price of petrol but no everything remains the same only change comes in the personal pockets of Government. Besides they can restrict the cars over 1000 cc to get CNG in them. But the problem is they are uneducated and just cant think of ideas which can take off the burdern over the public
@yousafhaque ok so what about the poor people of Pakistan!. they are seldom meeting two ends meet. car is now a necessity due to the deplorable state of public transportation. the family with earning of 30000-35000 also are maintaining the car. how are they going to pay for the expensive cng. can people who are making the policy can make the budget for 10 people with earning of 30000 rs and above.
The shortsightedness of our policy makers have ruined a great chance for the country to become a pioneer in CNG in auto industry in the world. If exploration and required infrastructure development had been kept in pace with the country requirements, including coal, natural gas, oil, etc. we would not be facing this situation today. Unfortunately the only way forward for teh government now is to restrict the use of gas to the Auto sector in favour of Power and fertilizer industries.
Like all other this decision of government too to increase the price of CNG is very commendable.To further discourage its use in cars and public transport vehicles the price of gas should be brought at par with other petroleum products.We better stop wasting this valuable and non-renewable fossil fuel by burning it in vehicles and use it for other good purposes
Useless decision by the Government. If the Government is sincere and serious about CNG use than they may restrict to provide CNG to high powered vehicle and public transport Mazda and Coaches. The vehicle of more than 1000cc must be banned to use CNG.