The Vice-President of Karachi Chamber of Commerce and Industry (KCCI) and Chairman of All Pakistan CNG Association Junaid Ismail Makda has expressed serious concern over the move of sending proposal for approval of Prime Minister of Pakistan for increase in CNG prices.
Talking to Business Recorder, he said that a meeting of the association was held recently with the Minister for Petroleum and Natural Resources Dr Asim Hussain, in which decision was made that the price difference between petrol and CNG will be maintained at the parity of 60:40.
He said that summary has been moved for approval of Prime Minister when Dr Asim is out of the country, which is shocking, and demanded its withdrawal. Makda noted that over 70 percent of transport vehicles and over 50 percent of private vehicles have already been converted to CNG, resulting in huge saving of foreign exchange in the shape of saving import of oil.
He said that nobody would use CNG after increase in CNG price to Rs 75 per kg, and all people would start using petrol and diesel. This will ultimately increase the bill of oil import, which would add the burden on national exchequer, and mount pressure on foreign exchange.
Quoting the government commitment with CNG sector, he said that the proposal of price parity "is totally against the government guarantee" that 50 percent difference would be maintained between the prices of CNG and petrol. He said that a meeting of all CNG stakeholders will be held on July 13 to prepare a strategy to deal with the situation and finalised the plan on July 22, 2011.
He said that total gas consumption by CNG stations comes to 6 percent, or 150 mmcfd of total gas consumption in the country. Revenue paid by CNG sector comes to around Rs 25 billion; substitution to petrol in litres via use of CNG comes to 2.5 billion litres; saving of foreign exchange is over 1.6 billion dollars annually, number of employees in CNG sector is around 0.5 million; and investment made by general public to convert their vehicles comes to over Rs 70 billion; and number of vehicles converted on CNG has crossed 2.200 million. He also pointed to the burring issue of CNG industry of Pakistan that more than Rs 300 billion investment has been made in CNG sector.