KARACHI: The PPP government has braved itself to meet the dual challenge of growing cost of fuel and looming energy crisis through promotion of LPG which is not only cheap as compared to petrol but is also a viable substitute for CNG, said Federal Minister for Petroleum and Natural Resources Dr. Asim Hussain, late Saturday evening.
Addressing the inaugural ceremony of the country's first autologous (auto-gas) LPG station, the Minister said the strategy would also reduce the exceptionally high reliance of the domestic, industrial and transport as well as power generation sectors on the fast diminishing natural gas resources of the country.
He said a study conducted by Sui Southern Gas has established that LPG would cost consumers Rs73 per litre as compared to Rs103 for petrol and Rs70 CNG (per Kg).
"Average per Km cost for these three fuel options would be Rs 9.40 (petrol), Rs6 (LPG) and Rs5 (CNG)," said the Minister for Petroleum and Natural Resources.
In terms of velocity, he said it would be 42 litre for petrol, 50 litres for LPG and nine kilogrammes for CNG with a petrol- run car covering a distance of 464 Kms, LPG 600 Kms and CNG 135 Kms.
"This is besides the fact that carbon content of LPG is far below as compared to petrol or motor spirit," said the Minister.
He said PPP government's energy policy has been developed after careful thinking and on basis of which major focus has been to reshuffle the current energy mix of the country with 55% current burden on gas.
Dr. Asim Hussain said the present government's approach was absolutely different as compared to that adopted by previous governments who while formulating their energy policies ignored depletion of natural gas.
"Usage of this precious commodity was raised to 8 BCF while its production was mere 4.3 BCF," he said and regretted that previous governments not only ignored harsh facts but the work on alternative sources of energy was also kept slow paced.
Dr. Asim Hussain said the present government had assumed power in a period when economic meltdown had turned into a global phenomenon and this had equally affected all countries and their governments.
Despite this the government had substantially subsidised price of gas for domestic users, he said mentioning that the government procured gas at a rate of six dollars but provided it at two dollars to the life line consumers.
This, he said could not be managed in context of oil and petrol (crude oil) due to international structuralisation.
The Federal Minister for Petroleum and Natural Resources said the Rs 14 charged under head of general sales tax on every single litre of petrol could be slashed by the provincial governments that presently collect 70% of the GST share.
He on the occasion said the government is keen to promote LPG on strong lines and does expect that CNG stations' owners and other stake holders would opt for a conversion option that would be supplemented by government efforts to reduce rebate and other taxes on import of essential gadgets as pumps etc for LPG application.