The government is likely to allow local car manufacturers to import CNG kits, banned in 2011 due to serious gas shortage, it is learnt. Official sources told Business Recorder here on Thursday that the government was going to allow the import of CNG kits to local car manufactures including Toyota, Honda and Suzuki, but not to other companies with licenses to import CNG kits.
Petroleum Ministry has forwarded a summary to the Economic Co-Ordination Committee (EEC) of the cabinet in this regard, which will be taken up in the next meeting. On November 29, 2011 the PPP-led coalition government banned company-fitted CNG kits and cylinders in locally manufactured vehicles and imposed curbs on their import except in cases where letters of credit (LCs) were already opened prior to the decision. It, however, exempted CNG-fitted public transport vehicles from this restriction.
There are an estimated 4 million CNG converted vehicles running in the country and the majority of these kits have completed their life and should be replaced. The government's decision to ban the import of CNG cylinders and kits has promoted smuggling of substandard kits and cylinders posing serious threat to life. This, the summary argues, accounts for their recommendation to at least allow local car manufacturers to import CNG kits and cylinders', a senior petroleum ministry official said. Another senior petroleum official commenting on the subject said that when he was working as a director in the Ministry he strongly opposed the idea of allowing selective companies to import CNG kits and cylinders. He added that the government should allow all the licensed companies to import and not only some influential companies.
"In 2011, when banned the import of CNG kits and cylinders and imposed 2 days per week gas load-shedding for CNG stations in Punjab and no load-shedding in any other province. Now we have five days per week gas suspension to CNG stations in Punjab and three days in Sindh. The gas supply/demand situation has worsened so why should the government allow import of CNG kits at a time when we are unable to meet gas demand," the official argued.
If all the CNG stations (3495) remain in operation for one day they use up an estimated 350 Million Cubic Feet per Day (MMCFD) gas out of total national gas production of 4.1 Billion Cubic Feet per Day (BCFD), but at present the government is providing two days a week to CNG stations in Punjab and four days a week in Sindh, while there is no gas suspension for CNG stations in Khyber Pakhtunkhwa (KPK) and Balochistan.
Ghiyas Abdullah Paracha, Chairman Supreme Council All Pakistan CNG Association (APCNGA) commenting on the development said that he welcomes the government decision, but it should also allow other companies to restart import of CNG kits and cylinders.
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