The price of Compress Natural Gas (CNG) conversion kit has further increased by 30 percent reaching its historic peak after recurrent currency depreciation. The price was earlier increased twice during last eight months, which directly related to the hike in gasoline rates.
The demand of CNG cars has massively been increased after rising petrol prices where country has witnessed considerable conversion of gasoline cars into CNG during the last three years. According to official statistical report, Pakistan has officially been declared as a leading CNG fuel consuming country where over 1.6 millions cars are being entertained by around 1,700 CNG stations while 4,000 CNG station have been approved to be installed across country.
Despite all these facts, importers involved in this business are using illegal means to increase prices and they are openly marketing it at 30 percent excess rates with impunity, retailers said.
Although currency devaluation has created hurdles in the way of flourishing CNG kits industry, it is not upto that extend where industry was completely shutdown, retailers said. They lamented that CNG industry is suffering from immense losses due to these importers who are involved in illegal business to earn excess profit and urged the government to take stern action and to tighten the noose around CNG kits importers to facilitate the consumers.
Several retailers of CNG conversion kits alleged importers, saying that they are using delaying tactics in providing adequate supply of kits with ill intentions to increase the demand and its rate.
To a question, they said that importers are hoarding CNG conversion kits and its cylinders and added that CNG kits could be available at affordable price if rates were fairly fixed by importers.
They said that Landirenzo CNG kits for manual cars are being sold at Rs 14000, which had earlier been sold at Rs 10000. However, CNG cylinders with the capacity of 50 and 55 water liter are being sold at Rs 17000 and Rs 22000, which had earlier been sold at Rs 14000 and 15000, respectively.
While, CNG kits for automatic cars are being sold at Rs 16000, which were earlier sold at Rs 14000. CNG cylinders with the capacity of 50 and 55 water liter are being sold at Rs 21000 and Rs 27000, which were earlier sold at Rs 15000 and 17000, respectively.
"Importers have unjustly increased rates of CNG conversion kits by 30 percent soon after currency depreciation, burdening consumers with artificial inflation, which creates negative impact on its business," retailers said.
When prominent CNG conversion kits importers were asked about this illegal price increase, they refused any increase made to earn more profit, saying that importers are paying 30 percent extra in its imports because of currency devaluation and termed it as a chief factor in its hike. They said that importers are facing hardships because of recurring currency depreciation where several consignments, which were earlier booked when dollar stood at Rs62, are being cleared at Rs76 per dollar, forcing importers to increase its rates.