Proposed parity in CNG, petrol prices opposed

Vice President Karachi Chamber of Commerce and Industry (KCCI) and Chairman All Pakistan CNG Association, Junaid Ismail Makda, has demanded of the government to drop the proposal of parity in prices of CNG and petrol in the country. Strongly reacting to the recommendations of Asad Umar, Chairman, Pakistan Business Council (PBC), relating to CNG price parity with petrol, Makda said if the proposal was implemented it would prove last nail in the coffin of the CNG industry.
Referring to the government commitment with CNG sector, he said that the proposal of price parity was totally against the government guarantee that 50 per cent difference would be maintained between the prices of CNG and petrol. He noted that gas was being supplied to CNG stations at Rs 503 per MMBTU, whereas the fertiliser industry, which consume 85 per cent of gas, enjoying highest subsidy and getting gas at lowest price of Rs 36 to Rs 90 per MMBTU.
"Today, CNG is nether industrial fuel nor power fuel but is public fuel. CNG is used by cars, taxies, rickshaws and buses providing great relief to the common men," he added. He appreciated the plan of set up the ministry of energy within which there would be a national authority comprising private and pubic sector representations and professionals.
It is worth noting that total gas consumption by CNG stations is 6 per cent or 150 MMCFD of total gas consumption in the country. Revenue paid by CNG sector come to around Rs 25 billion. SNGPL and SSGC Unaccounted for Gas (UFG) losses account for billions of rupees and gas is wasted due to poor infrastructure and damage to transmission lines. Efforts should be made to overcome these loses. This alone can eliminate gas load shedding in the country
Giving statistic, he said that totals investment in CNG sector including foreign direct investment come to Rs 185 billion, total number of CNG stations are 3,000, investment made by general public to convert their vehicles come to Rs 70 billion, total gas consumption by CNG stations come to 6 percent of total gas consumption in the country.