Paracha seeks govt help for CNG sector’s promotion

ISLAMABAD: Central leader of All Pakistan Compressed Natural Gas Association (APCNGA) Abdul Ghiyas Paracha Tuesday sought government’s help for promotion of CNG in transport sector, terming it cost-effective and environment-friendly as compared to other petroleum fuels.

Expressing concern over recently revised prices of gas, he requested the government to resolve the issues faced by the CNG sector in consultation with the association and other stakeholders.

“It is a matter of survival of Rs 450 billion CNG industry and 3.7 million vehicles, which were converted into CNG with the understanding that the required measures would be taken for promotion of this sector,” he said while talking to APP.

Answering a question, he said CNG stations were operating under a deregulation policy and after increase in gas prices, the outlets were providing CNG at around Rs 139 per kg, Rs 132 per kg in Balochistan, Rs 123 per kg in Sindh and Rs 90.80 per liter in Punjab.

He was of the view that there should be difference between the rates of CNG and petrol, adding CNG was almost 20 percent inexpensive than other fuels.

“There must be no discrimination with CNG sector and its gas price should be at par with the general industry. Sales tax imposed on us be reduced from 26 percent to 17 percent, abolished Gas Infrastructure Development Cess and given permission to import latest Electronic Fuel Injection (EFI) compatible kits and lightweight cylinders for revitalization of the sector,” he said.

Paracha urged the government for taking drastic measures to promote the use of CNG in public transport and commercial vehicles as it would help cut transportation charges by 30 percent and environmental pollution 28 percent.

He said private sector should be further encouraged in import of Liquefied Natural Gas (LNG) to meet needs of industrial sector, adding, the APCNGA was ready to import LNG for its use on need-basis.“A formula already exists under which private sector can import LNG as per its requirements, get it injected into existing gas transmission network and receive at industrial units.”

He said the the CNG sector was one of major consumers of imported LNG and currently receiving around 220 million cubic feet per day (mmcfd) gas, which was extremely insufficient for the CNG outlets.

He also requested the government to notify the approval for import of latest Electronic Fuel Injection (EFI) compatible kits and lightweight cylinders for revitalization of the CNG sector.

Explaining the difference between old and new CNG kits, he said, “the old kits were for carbonated cars, now no carbonated car arrives in Pakistan as all are fuel injected. The new kits will give 15 percent fuel efficiency as compared to old ones, which can be tuned up through a mobile app without visiting any workshop.”

He said the new kits and lightweight 22kg and 45kg CNG cylinders could be used in 660cc to 3,000cc vehicles.

Elaborating the lightweight cylinders, he said these would have the same eight kilograms CNG filling capacity as of the old 60 kg CNG cylinders, adding that the new technology would be easy in handling and useful in fuel consumption, which would give better mileage.