With the surge in the prices of petroleum products, a staggering increase of 20 to 30 percent in the compressed natural gas (CNG) kits rates has been witnessed during the last about 10 days. The demand of CNG cars has increased after rise in petrol prices and massive conversion of gasoline cars to CNG has been witnessed.
According to official statistics, Pakistan is a leading CNG consuming country where over 1.6 millions cars are getting gas from around 1700 CNG stations, while 4000 CNG station have been approved to be installed across country.
Despite all these facts, CNG kits importers have illegally increased the prices and are marketing at 20 to 30 percent higher rates since increase in petroleum products prices. Several retailers of CNG kits blame importers for the increase, saying that delaying tactics were being used in providing kits aimed to increase its demand.
They said that importers were hoarding CNG kits with a view to increase the prices further. However, supply of the kits from the manufacturers is sufficient. They said that Landirenzo CNG kits are being sold at Rs 12000, which were sold at Rs 10000 before March when petroleum prices had not been increased.
They said that 50 and 55 litre CNG cylinders are being sold at Rs 15000 and Rs 20000, whereas these were sold at Rs 10000 and 15000, respectively.
When contacted some prominent CNG kits importers, they said that "after the massive increase in gasoline rates, the consumers are more interested to convert their vehicles to CNG, which has increase the demand of CNG kits". They said that inadequate supply of CNG kits from manufacturers was the major cause of increase in its rates.
However, Landirenzo, a leading CNG kits manufacturers, has already announced to increase its production to cater the market demand. This decision has been made after evaluating the company''s revenue figures, which show that out of total revenue of 164 million euro generated in 2007, 30 million euro came from Pakistan.
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