The prices of compress natural gas (CNG) conversion kits have touched new peaks and over 60 percent hike has been witnessed in last eight months owing to continuous rupee depreciation. The CNG kit prices have further increased by 30 percent after current currency depreciation and decline in its imports by 25 percent.
The price of CNG kits was earlier increased three times in short span of eight months, which directly related with the hike in gasoline rates. The demand of CNG-driven cars has massively increased after rising petrol prices and the country has witnessed considerable conversion of gasoline cars to CNG during last three years.
According to official statistics, Pakistan has officially been declared as a leading CNG fuel consuming country where over 1.6 millions cars are being entertained by over 1700 CNG stations while around 4000 CNG station have been approved to be installed across the country.
Despite all these facts, importers in this business are using all illegal means to increase CNG kits prices and they are openly marketing them at 30 percent excess rates, retailers said.
Although rupee devaluation has created hurdles in the way of flourishing CNG kits industry, it is not up to the extent where industry could be completely shut down, they said.
They lamented that CNG industry is being provided immense losses by 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 consumers.
Several retailers of CNG kits alleged that importers that they were using delay tactics in providing kits, with the obvious intention to increase demand and prices.
They said that importers were also hoarding CNG kits and its cylinders, and added that CNG kits rates could be available at affordable price if CNG kits rates were fairly fixed by importers.
They said that Landirenzo CNG kits for manual cars are being sold at Rs 17,500, which were earlier sold at Rs 14,000. However, CNG cylinders with the capacity of 50 and 55 litres are being sold at Rs 20000 and Rs 25000, which were earlier sold at Rs 17000 and 19000, respectively.
CNG kits for automatic cars are being sold at Rs 20000, which were earlier sold at Rs 16000. CNG cylinders with the capacity of 50 and 55 litres are being sold at Rs 25000 and Rs 30000, which were earlier sold at Rs 21000 and 27000, respectively.
"Importers illegally increased 30 percent more in the CNG conversion kits rates soon after currency depreciation, repressing consumers by artificial inflation, which creates negative impact on its business," retailers said.
When asked, some prominent CNG conversion kits importers denied that the prices of CNG kits had artificially been increased 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 Rs72, are being cleared at Rs86 per dollar, forcing importers to increase its rates. They said that Landirenzo has established its manufacturing unit in Pakistan to cater the growing market demand, causing some 30 percent decline in CNG kits imports.
They urged the government to take stern action against CNG kits counterfeiters, who are playing with human lives, saying that immense number of substandard CNG kits are openly being produced at Gujranwala.