ISLAMABAD: The federal government has planned to increase gas loadshedding for the compressed natural gas (CNG) filling stations from five days a week to six days in the coming month.

All Pakistan CNG Association (APCNGA) Chairman Ghiyas Abdullah Paracha fears that the decision will close down more than 300 CNG stations in Punjab.

He said thousands were almost on the verge of bankruptcy due to partial supply of natural gas and irrational pricing.

“The number of CNG stations that have closed down has been increasing, creating problems for the consumers, increasing unemployment and decreasing income of the government,” Paracha told Dawn.

Many CNG stations already closing down, thousands more expected to go bankrupt

He added that the CNG filling stations provide gas at Rs74.5 per kg to the consumers, while the cost is Rs69 per kg excluding sales tax and other taxes to the government.

He claimed that it was not favourable for the owners to spend so much money to sell gas just for four days in a month.

Opposing the decision of the finance ministry to increase loadshedding, Mr Paracha said gas that should be allocated to the CNG industry was being diverted to other sectors to increase their profits.

He alleged that the other sectors had alternative power sources, while the CNG industry entirely depended on natural gas for operation. The APCNGA chairman further claimed that the CNG outlets in Punjab were only provided natural gas for two days, and even in those days pressure was intentionally kept low, forcing operators towards bankruptcy.

Masses have to wait for hours to get a small amount of fuel for their vehicles, which wastes many productive hours of their day, he observed.

A delegation of the APCNGA will meet the concerned officials of the petroleum ministry, on Monday, to get their issues resolved, after which the association will announce its future steps, Paracha said.

Published in Dawn, June 30th, 2014