Third increase in CNG prices in four months

The associations of CNG filling stations have increased price of compressed natural gas (CNG) in Sindh by Rs 1.25 to Rs 38.25 per kilogram, a move vehemently opposed by the users. CNG Station Owners Association (CSOA) Chairman Malik Khuda Buksh said that the decision had been taken at an emergency meeting of the CSAO and CNG Dealers Association held here on Monday.
He said that CNG price had been increased due to rise in diesel prices, which grew by 13.63 percent last week. He said that due to frequent power failures, CNG filling stations had to use diesel generators to ensure uninterrupted supply of gas to vehicles. "We have to pass this additional expense to the CNG users," he added.
It may be noted that CNG prices had been increased twice during the current year. The first increase was made on January 2, 2008, when the Oil and Gas Regulatory Authority (Ogra) announced an increase of rupees two per kilo to Rs 36. The second increase was announced by the CNG filling stations on March 20, 2008, raising price by rupee one to Rs 37 per kilogram.
Meanwhile, the CNG users have reacted sharply to the rise in CNG prices, saying that the Ogra needed to play its role to discourage frequent rise in the CNG prices. They said that petrol prices were already increase manifold in the current year, making it totally unaffordable for the middle class, rise in the CNG prices would force the vehicle owners to use public transport for commuting.
A car owner Pervez Aslam said that he had switched from petrol to diesel to reduce fuel cost. "Then, I purchased CNG-fitted car when diesel prices also touched very high to reduce expenses. Now, I have no option as the CNG price is reaching Rs 40 per kilogram," he said helplessly.
A working lady Saima said that she was now seriously thinking of using public transport instead of using her car. "I had paid an extra amount on CNG-fitted car to save on fuel," she added.
The new coalition partners had promised during their election campaign to reduce prices of petroleum products. What has happened to their promise. Is there any check on CNG dealers," she questioned. "At least, they can cap the prices of CNG, which is locally produced," Saima noted.