KARACHI, Oct 3: Prices of CNG kits and cylinders went up further by 16 per cent when the market resumed on Monday. Sources said the installation of a CNG kit with a 55kg cylinder cost from Rs48,000 to Rs50,000 as compared to Saturday last when the price ranged between Rs40,000 and Rs42,000. Similarly the CNG kit with a 50kg cylinder was available for Rs39,000 to Rs40,000.
The sources said the supply of cylinders was short of the demand and the retailers were also reluctant to buy cylinders in bulk.
They said if a retailer bought expensive cylinders in large numbers and the next day prices dropped, that retailer would suffer big losses. Every retailer was of the view that a very small number of cylinders should be bought from suppliers.
However, the suppliers had also been unable to take care of the demand for cylinders. The demand ranges around 20,000 cylinders daily while the supply is about 8,000 to 10,000 daily in the country, the sources added.
The sources said the prices would go down only if cylinders in bulk were imported and the market was flooded with them. They expected that more cylinders were on their way from abroad.
