CNG price may be raised by up to Rs 6 per kg

The government is likely to increase Compressed Natural Gas (CNG) price by up to Rs 6 per kg within next few days. At present, the gap between petrol and CNG prices is 45 per cent, which will widen after the fresh increase in petrol price by Rs 4.15 per litre.
Sources in the CNG Industry told Business Recorder here on Monday that the All Pakistan CNG Association (APCNGA) has pleaded for increase in price of CNG by Rs 2 per kg, pleading that heavy usage of generators for smooth functioning of CNG pumps in the face of unprecedented electricity load-shedding, has resulted in additional burden of expenses of the owners.
The petroleum ministry also wanted to impose Petroleum Levy (PL) of Rs 4 per kg on CNG, but the proposal was withdrawn in the face of fierce resistance from CNG station owners. The government and APCNG Association on July 12, 2011 agreed on the formula that there would be a price difference of 45 percent between CNG and petrol, now at a time when petrol prices increased by Rs 4.15 per litre an increase of over Rs 2 on per kg CNG is under consideration.
In this connection final decision would be taken in the next meeting of Economic Co-Ordination Committee (ECC) of the cabinet along with imposition of PL on CNG, sources added.
An official privy to the deliberation said that rules regarding the imposition of PL on CNG have not yet been formulated, but in accordance with the agreement between All Pakistan CNG Association and the Ministry of Petroleum CNG price would be increased by Rs 2 per kg on account of increase in electricity price, while Rs 4 per kg levy on CNG would also be imposed. Formula is yet to be finalised in this regard, CNG association and government were agreed to keep 45 percent difference between CNG and petrol prices.
A top official of the Ministry when contacted, said after an hike in petrol price by Rs 4.15 a litre on October 1, the federal government is likely to raise CNG price by up to Rs 6 per kg, saying that CNG association has also requested for an increase of Rs 2 per kg and government also wants to impose PL on CNG.