The CNG dealers association on Wednesday threatened to observe countrywide strike from December 30, if the government does not withdraw the decisions of gas price hike and two-day closure programme. Addressing a press conference, CNG Association Chairman Ghayas Paracha said the government was following the strategy to destroy the CNG sector.
He claimed that the local transporters had also announced to join them in case a strike call was given. "It is not a matter of CNG stations only, but it can collapse the whole CNG industry," he said, adding that the government is not keeping its commitments made in 1992 to maintain 50 percent price differential between CNG and petrol to encourage the CNG industry.
"The government at that time wanted to encourage the CNG industry and eventually we made investment of billions of rupees," said Paracha adding that CNG industry had taken the risk of importing equipment. He said some parts were being manufactured in the country and the local manufacturing industry would also suffer if price of CNG was increased to minimise price differential between petrol and CNG.
The dealers held a meeting here and the press conference was also addressed by the regional heads of CNG associations belonging to Sindh, Punjab and the NWFP. Media was informed that there are around 2,500 CNG stations in Punjab and the NWFP, while there are 542 CNG stations in Sindh and Balochistan.
Paracha said there were more than 2.5 million vehicles running on CNG and increase in CNG prices would be an addition to the general hike in the inflation for ordinary citizens. The CNG dealers said the investment totalling Rs 185 billion had been made in the CNG sector which included kits fitting and employment at CNG stations which was at stake due to shift in the government policy.
He said the government was planning to increase gas rates for the CNG sector, while electricity charges had been raised by six percent in October followed by 13.6 percent, scheduled for January and additional six percent in April 2010. "We have estimated that the overall impact of the increase would take CNG prices to Rs 57 per kilogramme in January," said Paracha and added that in case of cross subsidy to facilitate domestic consumers, its price will go up to Rs 59 per kg.
The CNG dealers brushed off the offer of textile sector to buy all the CNG stations in the country. The offer was made by the delegation of textile industrialists in an official meeting held recently. "Instead of getting into the CNG business the textile sector should focus on getting away from the subsidies and grants offered by the government," dealers said.