All Pakistan CNG Association rejects Tariff Hike, Gas Outage for CNG Sector

All Pakistan CNG Association rejects Tariff Hike, Gas Outage for CNG Sector

Karachi: Junaid Esmail Makda, Central Chairman, All Pakistan CNG Association (APCNGA) while expressing great concern, has rejected the recent news by ECC to increase tariffs and curtailment of gas for CNG stations for 3-days in Punjab and 2-days in Sindh. He termed the decision one-sided and a fatal blow to cripple CNG sector. He stated that huge investment was made in the CNG sector in the light of Petroleum Policy 1994 which assures that “The existing price differential between industrial gas tariff and motor gasoline will be maintained as an incentive for CNG USE”.

Upon this assurance of 50:50 differential ratio the investment was made and 3200 CNG stations were established across the country with total investment of Rs.185 Billion. He said that 3 million CNG vehicles ply on the roads countrywide where public has invested Rs.115 Billion in CNG kits. Approximately 6 percent CNG is used in the CNG sector whereas the revenue contribution is Rs.25 Billion per annum. He said that usage of CNG has substitution of petrol of 3.44 Billion Litres yearly which leads to saving of foreign exchange worth US$ 2.373 Billion per annum. He said that the parity between petrol and gas must be maintained as pledged by the Government in the beginning which is 50%. Any reduction/ revision in gas sales price is not acceptable in any manner.

Junaid Makda warned that the harsh decision would severely affect the economy and investment in the CNG sector and the situation arising out of gas curtailment to CNG sector will not only affect the CNG users but will also lead to layoff of human resource. He said that currently over 500,000 people are directly and indirectly employed in CNG sector.

He voiced that the CNG has status of No.1 user of clean fuel in the world and CNG sector contributes highest tax amount in the national exchequer. CNG sector has also played vibrant role to reduce trade deficit and creating hundreds and thousands of job opportunities.

He lamented that due to extreme gap between supply and demand, CNG stations are frequently facing gas load-shedding and as an outcome the several CNG stations are closed and ultimately the consumers are suffering all over Pakistan. He bemoaned that due to continuous increase in gas prices by OGRA, CNG sector has faced additional burden. Due to exorbitant taxes in shape of GST and WHT, the CNG industry was also prone to double taxation on purchase being made.

Junaid Makda categorically rejected this plan in absolute terms and stressed that the APCNGA will not accept any curtailment of gas supplies to CNG stations in Punjab and Sindh. He demanded to take APCNGA on board as major stakeholder and one-sided iron-handed policy is not acceptable which will lead to ensuing agitation and unrest.

For more information, contact:
M. Shafiq Baig
Public Relations Officer
Karachi Chamber of Commerce and Industry (KCCI)
Aiwan-e-Tijarat Road,
Shahrah-e-Liaquat, Karachi-74000
Tel: +9221 9921 8001 -09
Fax: +9221 9921 8010
Email: pro@kcci.com.pk, pro2@kcci.com.pk
Website: http://www.kcci.com.pk/

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