ISLAMABAD: All Pakistan CNG Association (APCNGA), on Friday, said contrary to the vision of Prime Minister Imran Khan, the price of CNG has seen an unprecedented hike.
Despite buying the costliest LNG, additional taxes have been slapped on the CNG sector, which will make it dearer than petrol for the first time in the history of Pakistan, it said.
The price of gas will further increase in October and November, if the process of buying costly LNG continued, said Group Leader of APCNGA Ghiyas Abdullah Paracha.
He said that the sales tax and customs duty have been revised upward, which will increase the price of the CNG by Rs 18 per litre in Punjab and Rs 28 per kg in the province of Sindh.
The high price of CNG will make it unattractive for consumers that will result in the bankruptcy of this industry leaving hundreds of thousands of people jobless.
He added that the dollar is gaining strength against local currency, which is also contributing to the cost of fuel; therefore, the government should act swiftly to save this industry from collapse.
Following the notification of the OGRA, the price of per litre CNG will jump to almost Rs 125 in Punjab and Rs 192 in Sindh, which will be an unbearable blow to this industry; it will lay waste to Rs 450 billion investment and it will result in a new and devastating wave of inflation.
He informed that a delegation of APCNGA has met with the concerned officials and apprised them of the emerging situation, which will result in the closure of CNG stations in Punjab and Sindh.
Paracha said that the government is giving a subsidy of billions to other sectors, which has increased their burden fourfold, while increasing the price of CNG is discrimination.
He said that the government has reduced petroleum levy to zero, sales tax has also been reduced on petrol, taxes on LPG has also been relaxed but taxes on CNG have been increased, which is beyond understanding, which will result in unprecedented inflation.
The government should immediately intervene and take steps to keep the price of CNG at affordable limits as the leaders of the APCNGA are holding meetings to find a solution to the problem.
Copyright Business Recorder, 2021
Comments
Comments are closed for this article.