551 CNG stations in Punjab: no decision yet over gas supply suspension

The Ministry of Petroleum and All Pakistan CNG Association (APCNGA) on Monday failed to reach at a decision on suspension of gas supply to 551 CNG stations across Punjab. A high level delegation of APCNGA led by Ghayas Abdullah Paracha met Secretary Petroleum Mohammed Ejaz Chaudhary here to discuss the matters related to CNG industry.
Talking to reporters, Ejaz said there was no proposal of Petroleum Ministry to the government to further increase CNG prices. However, he added, if the Cabinet or Planning Commission in future proposed any increase in CNG prices, the Ministry could arrange a meeting between APCNGA and Planning Commission to take consensus decision.
The Petroleum Ministry and APCNGA would hold a formal meeting on March 10 in Lahore, wherein all the outstanding issues would be discussed, the Secretary Petroleum maintained. Paracha said APCNGA had conveyed all the concerns of CNG body to Secretary Petroleum. He said that on March 3, the Petroleum Ministry suspended gas supply to 551 CNG stations in Punjab set up after 2008, saying those CNG stations were having gas supply contract for nine months.
Paracha said SNGPL had suspended the supply of gas to 551 CNG stations on the directives of the Petroleum Ministry. The government estimates that during the last few years the gas production has increased by only seven percent while its consumption has increased by 40 percent per annum. CNG sector is identified as the major user of gas whose consumption has increased by 39 percent per annum over the last few years.
Another official of APCNGA said the government had imposed a ban on the import of CNG kits and cylinders, which was also opposed by investors in the automobile and kits manufacturing sectors, which had started pushing for the lifting of the ban, which was jeopardising their investment.
He said that a collective investment of Rs 14.5 billion had been made by CNG kit manufacturers and OEMs, which was under threat after the imposition of the ban. It was informed that a company Inflex entered into a joint venture agreement with POF Wah for manufacturing of CNG cylinders but due to the ban it has become difficult for them to progress further with manufacturing in Pakistan.