July 02, 2008	Wednesday	Jamadi-us-Sani 27, 1429

LAHORE, July 1: The All Pakistan CNG Association has threatened to go on a country-wide strike if the government does not review the 31 per cent increase in gas prices and the tax regime on CNG stations.

Addressing a press conference here on Tuesday, the association’s chairman Sanaur Rehman said that a token strike of 24 hours would be observed from Sunday midnight to Monday midnight.

He said the price increase would render the CNG business non-profitable and force many investors to quit the business.

He said that under the 1992 policy, CNG (compressed natural gas) was being promoted as cheap fuel for the common man, but the price increase had negated that policy.

“CNG will now cost as much as diesel and deter further promotion of conversion to gas.”

Mr Rehman said that over 1.8 million vehicles were being run on CNG.

Otherwise, the oil import bill would have gone up by $5 billion.

He dispelled a perception that CNG station was a highly lucrative business and people were still setting up stations.

“The government has recently increased electricity tariff by 20 per cent — 10 per cent routine increase and

10 per cent surcharge if the electricity bill goes beyond Rs20,000. Every gas station consumes power more than Rs20,000.

The GST has also been increased from 25 to 26 percent. The parent oil company also charges eight per cent fee.”

Mr Rehman said the recent increase of five per cent in petroleum development levy was in addition to these charges and another four per cent income tax was deducted at source.

“As if all these taxes are not enough, the gas companies receive three months’ bill in advance, which in most cases goes up to Rs6 million,” he said. “It used to be a lucrative business, but not any more,” a member the association said, adding that most of the CNG stations were now offering subsidised rates because of lack of customers.