The aftermath of the recent surge in oil prices has compelled many us to convert our vehicles from petrol to CNG in order to balance our wallets and the affordability of travelling by car.
The mafia dealing in these kits and cylinders or its black marketers have identified this desperation as a great opportunity to exploit this need at their best, showing no mercy for the public. An average price of a CNG kit and cylinder, only a month back, was RS:25,000/- that, presently, is being installed at a price of RS:40,000/-
This depicts an increase of 60% in just one month. What is the reason behind this drastic increase in prices, despite the fact that internationally the prices offered by the manufacturers of kits and cylinder are stable since the last six months.
It is pertinent to mention that in line with the incentive program offered by the government to promote this industry and to keep this product affordable for the public, a complete exemption of custom duties, sales tax and income tax is allowed by the government of Pakistan.
The increase in prices is mainly on account of the vested interest of many of the importers and wholesalers who have created a shortage of CNG cylinder in the market and are selling small quantities with unbelievable premium.
I strongly believe that the government should intervene at this stage and should fix selling prices of CNG kits and cylinders on a quarterly basis in consultation with customs and the CNG owner's association. In case of violation of these fixed prices, strict action should be taken by the concerned quarters.
Further, only a few international manufacturers have been approved by our government who can export their Kits and Cylinder to Pakistan. To improve the supply side and to increase healthy competition among the international manufacturers our government should allow as many international manufactures as they can to export their brand to Pakistan, while ensuring that they meet all the international safety standards. This will significantly curtail the monopoly and will bring prices down.
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