Junaid Esmail Makda, Central Chairman, All Pakistan CNG Association (APCNGA), while expressing great concern, has rejected the recent news by ECC to increase in tariff and curtailment of gas for CNG stations for 3-days in Punjab and 2-days in Sindh. He termed the decision one-sided and a fatal blow to cripple CNG sector.
He stated that huge investment was made in the CNG sector in the light of Petroleum Policy 1994, which assures that "The existing price differential between industrial gas tariff and motor gasoline will be maintained as an incentive for CNG USE".
Upon this assurance of 50:50 differential ratio the investment was made and 3200 CNG stations were established across the country with total investment of Rs 185 billion. He said that 3 million CNG vehicles ply on the roads countrywide where public has invested Rs 115 billion in CNG kits. Approximately 6 percent CNG is used in the CNG sector whereas the revenue contribution is Rs 25 billion per annum.
He said that usage of CNG has substitution of petrol of 3.44 billion litres yearly, which leads to saving of foreign exchange worth $2.373 billion per annum. He said that the parity between petrol and gas must be maintained, as pledged by the government in the beginning, which is 50 percent. Any reduction/revision in gas sales price is not acceptable in any manner.
Junaid Makda warned that the harsh decision would severely affect the economy and investment in the CNG sector and the situation arising out of gas curtailment will not only affect the CNG users but will also lead to layoff of human resource. He said that currently over 500,000 people are directly and indirectly employed in CNG sector.-PR
Comments
Comments are closed for this article.