Bad for business: CNG dealers protest four-day closure of gas stations

News conference held against SSGC’s notification

KARACHI: The All Pakistan CNG Association is unhappy that the Sui Southern Gas Company (SSGC) wants them to close gas stations for four days across Sindh.

To register their complaint, the dealers held a press conference on Friday afternoon at the Country Inn hotel on Sharae Faisal. The association was joined by the CNG Dealers Association, Karachi Transport Ittehad, Interior Sindh CNG Association and the All Karachi Tajir Ittehad.

Gas tariffs should be decreased as per the rates of international crude oil so that CNG prices can also be reduced in the same manner as petrol and diesel prices, demanded the association's chairperson, Shabbir Sulemanjee.



In a meeting held in November, the managing director of SSGC had assured that CNG load-shedding will only be scheduled for twice a week, said Sulemanjee. Later, they changed it to three days due to high consumption of gas in winters, until another notification came a few hours later, making it four times a week, he added.

Sindh produces up to 70 per cent of gas from which the CNG sector only uses 1.5 per cent, according to the association chairperson, who added that the remaining 98 per cent is used by other sectors. "Captive power is still using 25 per cent of gas for its electricity production despite the December 2013 directives of the Supreme Court that they should not be supplied gas. Isn't it unjust that only the CNG sector is being targeted for load-shedding?"

Meanwhile, the transports pledged allegiance to the CNG association and promised to stay united until the government accepts their demands. The call for a four-day closure is a conspiracy to bring CNG and petroleum rates closer, said All Tajir Ittehad president Atiq Mir. "The CNG closure affects everyone at different levels," he said. "We are only demanding our rights from the government and not any concession."



Elaborating further on gas tariffs, Sulemanjee said that the government will be announcing a rise of Rs100 per one million British Thermal Units (MMBTU) from January 1, 2015, when the price for gas has dropped up to 45 per cent in the international market. "Following the same trend, CNG prices can be brought down to Rs76 per MMBTU given that the current rate is Rs84," he claimed.

"As per Article 158(b) of the Constitution, Sindh cannot be subjected to gas load-shedding as it produces 72 per cent of its share in Pakistan," said Dr Zulfiqar Yusufani of the Interior Sindh CNG Association.

The panel also announced that transporters and members of CNG associations will conduct a peaceful protest outside the SSGC office on Monday. If their demands are not met, all CNG stations and transporters will go on strike across Sindh, it was decided.

Published in The Express Tribune, December 27^th, 2014.