As we recently reported that inflation in the country continues to experience an upward trend, it should not come as a surprise that the price of CNG might also experience a hike. Nevertheless, in an attempt to offer relief to consumers, the All Pakistan CNG Association (APCNGA) requested the regulatory bodies to reduce the price for the CNG sector.
The move emerges following the decision of the Economic Coordination Committee (ECC) to reduce tariff for the industrial sector. To be more specific, ECC cut tariff for industrial customer by PKR 200 per million British thermal units (mmbtu). It seems that the main aim of this move is to increase competition in the industry, which was a laudable move but the CNG sector was denied the same benefits.
“The reduction in gas tariff has revitalized many sectors including the fertilizer industry but the CNG sector was kept out of the list,” said APCNGA Central Chairman Ghiyas Abdullah Paracha.
Interestingly, Mr. Paracha said that APCNGA is working on proposal to allow installation of new lightweight CNG cylinder in vehicles in a bid to improve the efficiency of the cars. He added that there is a very little difference between the price of petrol and CNG, which resulted in decrease of the latter’s consumption.
A cut in gas tariff could mean drop in price of CNG and offer relief to the CNG sector. Also, many analysts believe that reduction in the price of natural gas will help reviving the troubled sector, save jobs and also reduce budget deficit. In any case, it is yet to see whether the government will cut tariffs for CNG sector or not.