CNG station owners seek permission to raise prices

All Pakistan CNG Station Owners Association has demanded of the government to allow at least Rs 3 increase in CNG prices to save the industry from collapse.
The association President, Tariq Kandan, made this demand while addressing the meeting of Standing Committee Rawalpindi Chamber of Commerce and Industry (RCCI) on CNG on Wednesday. RCCI President Dr Hasan Sarosh Akram presided over the meeting, and attended by senior executive of chamber, business leaders and a number of CNG station owners.
In his presentation on the state of CNG industry in Pakistan, he expressed dismay over the attitude of government towards this industry. He said that over 65,000 people employed at 1100 CNG stations were earning livelihood, while thousands others are involved indirectly.
He said besides saving more than $1 billion foreign exchange it was saving more than Rs 96 billion of general public annually. "We are providing CNG on 39 percent less than petrol prices and are saving environment and foreign exchange," he added.
Kandan said that the government was facing a trade deficit of $13 billion and if positive measures were not taken to save CNG industry, the deficit would increase. "We are saving more than 20 million liter of petrol annually and giving boost to the country's economy and protecting environment," he said.
Giving a break up of the input cost of gas, he said after inclusion of all costs and taxes, the production cost of one kilogram CNG comes to Rs 33.20 and we sell it on Rs 33.46. There is no profit in this high-risk business, which put a lot at stake, there should be 20 to 30 percent profit.
During last decade the government had increased the input cost to 338 percent, he added. Talking about role of Hydrocarbon Development Institution of Pakistan (HDIP), he claimed it was causing damages to the CNG sector in Pakistan.
Speaking on the occasion, RCCI President Dr Akram said that role of SNGPL was quite negative on this whole episode. The government should allow the association to increase the CNG prices to save this industry, he added.
"If immediate measures are not taken this high profile industry will face disaster, which will result in damages to investment-friendly atmosphere of the country", he said adding that at present when the government was talking about strengthening economy and industrialisation, it should give special attention to this industry as well.