The government is formulating a policy to encourage private sector in the manufacture of compressed natural gas (CNG) kits to meet its high demand.
"The Oil and Gas Regulatory Authority (Ogra) is actively considering a to prepare a policy to encourage local manufacturing of CNG kits," said Parliamentary Secretary for Cabinet, Dr Firdous Ashiq Awan, on Tuesday.
Responding to a calling attention notice, Firdous said there was a wide gap between the demand and supply of CNG kits which are not manufactured locally at present.
She said that the government would welcome investors to step in this field and they would be facilitated in every possible manner.
Pakistan imports gas cylinders from Italy and Germany. The fluctuation in prices of steel and other related material escalates the prices of cylinders, she said.
"The government is closely monitoring the prices. There has been rapid increase in the use of CNG kits. Therefore, the best option we have right now is to encourage local manufacturing of cylinders to bring down the prices," she added.
The parliamentary secretary said that liquefied petroleum gas (LPG) cylinders are already being manufactured locally to cope with the situation, to some extent.
Firdous said the prices of gas also vary along with petroleum prices but only three percent increase in gas prices had been recorded during last three years.
Dr Farid Ahmed Paracha from Muttahida Majlis-i-Amal (MMA) said that prices of CNG kits had gone up from Rs 25,000 to Rs 55,000.
He said the prices of natural gas have also increased rapidly despite having adequate gas resources in the country.