KARACHI, Aug 15: CNG Dealers have threatened to close down their business in case the government brings down the rate to around Rs40 per kg from Rs47.25 per kg.

This was stated by chairman CNG Dealers Association Abdul Sami Khan at a press conference on Friday. He said that the government had made a wrong estimate of only 50 per cent expenses of a CNG station, while the actual expenses are around 75 per cent.

He termed as baseless the market reports that a CNG dealer was minting profit of Rs22 per kg on the retail price of Rs47.25. Giving details of the cost of components on per kg price, he said a dealer gets gas from the SSGC at the rate of Rs23.50 per kg on which the operating expenses come to around Rs20 per kg while the share of GST in expenses is Rs6.52 per kg. Surprisingly, he said that a CNG dealer earns a paltry profit Rs3.13 per kg or 12.39 per cent of the total price of Rs47.25 per kg.

Urging the government not to take steps, which might lead to closure of the CNG pumps Mr. Sami said it would not be possible for the dealers to carry on their business on Rs40 per kg.

On petrol and diesel he said that he would meet the petroleum secretary on Saturday to apprise him about the problems of petrol pump owners after decrease in dealers’ commission by 60 paisa per litre in petrol and 25 paisa per litre on diesel.

Meanwhile, the CNG Station Owners Association also held a meeting on Friday and expressed it anguish over proposed move to cut in CNG rate by the government.

The CNG owners requested the concerned authorities to invite the stakeholders before making any decision about CNG price control. However, the owners had never been invited nor taken into confidence despite being the biggest stakeholders in the business with billions of rupees investment.

According to a statement, the association said if the owners were not taken into confidence before finalising the prices, they would be forced to close down their businesses depriving the public of a cheaper fuel.