CNG prices to touch Rs.70/Kg

People should be ready to face another hike in the rate of CNG (compressed natural gas) as price trend shows that it may go up to Rs70 for one kilogram during the current year.

The Hydro Development Institute of Pakistan (HDIP) started making CNG in 1996 in Pakistan to provide cheaper fuel to the public. In 2002, two CNG stations were established in the country, one at Karachi and another at Islamabad, where motorists were provided gas at a rate as low as Rs22 per kilogram.

Now there are 2,066 CNG filling stations in the country and due to its high consumption Pakistan is ranked number two in the world. Argentina is number one in CNG consumption but its prices are decreasing there. In India the price of CNG has decreased to Rs4.50 per kilogram in June. But in Pakistan, the price of CNG has touched an alarming height from Rs22 to Rs50, which is expected to further increase despite increase in its consumption.

With CNG stations in 53 cities including Rawalpindi and Islamabad the government saves 23 billion litres of petrol every month. Rawalpindi has 205 CNG stations consuming 755,783.82 MMBTU gas per month and Islamabad has 50 CNG stations consuming 329,131.08 MMBTU gas per month. Lahore, a big city, has 311 CNG stations at present.

All Pakistan CNG Station Owners Association Vice-Chairman Ghayas Ahmed Piracha told �The News� that the government has adopted a policy to crush them. The CNG stations are being supplied only 7 per cent of gas while 93 per cent goes to industries and domestic users, he said. He said the government should supply gas in cubic meters rather than in kilograms, as it will provide a great relief to consumers, he suggested.

He said that the government imposing a number of taxes on CNG station owners and due to it gas prices would increase further. He said if government did not give relief in taxes to them, CNG price would reach to Rs70 per kilogram in a few months.

He urged the government to follow a permanent policy on CNG stations otherwise consumers would bear the burden of gas charges. He said the government should also lift ban on new CNG stations.

�Petrol and gas prices are almost going to be equal in the country what kind of relief getting a common man in this regard,� Babar Ali Khan, a CNG consumer told �The News� here on Monday. Lack of planning and lack of policy are creating hardships for CNG consumers in the country, he said.