Government should relieve the CNG sector

Islambad : An important meeting of the Central Working Committee of the All Pakistan CNG Association was held Thursday in which a working group was formed to consider different recommendations and to implement them with the government.

If gas prices for the CNG sector and all other consumers are not immediately reduced in accordance with the formula of the government and OGRA.

So CNG stations across the country will be shut down and representatives of other industries will work together to reduce prices and every effort will be made to eradicate corruption in the gas sector.

Therefore, if the cost of gas which was Rs541/mmbtu is reduced by 50 percent the tariff will become Rs318.50 while Rs96 are other expenses. A justified approach can bring down gas tariffs to Rs400/rnrnbtu.

Government should relieve the CNG sector of Rs646/mmbtu subsidy burden the tariff for the CNG sector is Rs1283 while the price of gas has been determined at Rs1283 by OGRA. The difference of Rs646 is used by the government to provide subsidies to other sectors for which CNG sector is burdened. CNG will become 60 percent cheaper than petrol if the subsidy is removed and gas tariff is reduced. The provinces of Khyber Pakhtunkhwa, Sindh, and Baluchistan are self-sufficient in gas production while Punjab relies on imported RLNG. The CNG sector is paying the highest price for gas and paying the highest taxes but gas supply to CNG sector remained discontinued for three days in Sindh while the gas pressure is kept low by 70 percent in Khyber Pakhtunkhwa and Baluchistan which add to the operational costs. Reduced gas rate and abolishing unjustified subsidy can reduce CNG tariff by 75 percent. The petrol price has been reduced by 38 percent, from Rs117 to Rs72. The gas prices can be reduced by 60 percent in Sindh, KPK, and Balochistan according to this proportion which will make CNG 40 percent economical as compared to petrol.

Private import of LNG will provide economic was to masses in Punjab. Some companies want to continue their monopoly. Inexperienced, incompetent, and driven 1w personal interests want to destroy the was sector and I SiC chain

Presently LNG is available at the cheapest price in the world, but the local consumers are paying the highest price in the world as transport of gas and other costs are highest in the world. Govt should immediately allow private companies to import LNG on their own risk so that masses can be benefitted from reduced prices of LNG in the international market. The gas sector is playing an important role in the national economy. Apart from CNG and transport sector, most of the electricity is produced through gas, 90 percent industry including the export industry is being run on the gas, fertilizer industry, and masses in cities also consume gas.

Reduction in gas price will save billions of rupees on a daily basis, stabilize the economy, and put the crisis to rest.