CNG associations threaten shutdown

An alliance of CNG associations of the country on Friday threatened shutdown, if the government penalised them for selling gas at Rs 47.25 per kg. This was stated by Malik Khuda Buksh, President, CNG Stations Owners Association of Pakistan (CSOAP) along with other association members at a press conference.
The alliance comprising All Pakistan CNG Association, Pakistan Petroleum Dealers Association and CSOAP have bluntly refused to sell CNG at Rs 43.83 per kg, a price that has been fixed by the government. Malik said that CNG is a privately owned industry and law empowers the station owners to fix CNG rate as per station expenditures.
He claimed that the government has miscalculated the revised gas tariff at Rs 5.58 and revealed that actual hike in gas rate is Rs 6.35. He said that an alliance of CNG associations has decided to fix the selling rate of CNG at Rs 47.25 per kg and termed it as merit judgement in accordance with accurate calculation.
Despite efforts by the CNG sector to strengthen the country''s economy, which facilitated the government to save around $3.5 billion in gasoline import during FY 2007-08, the sector is deprived of industry status and CNG stations are however paying utility charges as commercial consumers, he said.
He said that separate tariffs should be fixed for commercial and domestic purposes because natural gas is being produced locally and the government should not compare its rate with that of international market.
He said that Pakistan is the largest CNG consuming country in the world and added that around Rs 92 billion have been invested to establish 2,130 CNG stations across the country. He informed that about Rs 12 billion would further be invested to establish more CNG stations. He said that investors are shy of investing further in the CNG sector owing to unfriendly policies of the government.
According to the association, 2,130 CNG stations are operating in the country while around 4,000 have been approved and will soon start operating, he said, adding that some 1.7 million light vehicles have been converted to CNG across the country. He said that CNG sector was providing 55 percent cheaper and environment-friendly fuel as compared to diesel and petrol besides ensuring pollution-free environment in the country.