CNG sector reacts sharply to minister’s statement

Published October 30, 2013
A view of long queue of vehicles at CNG Station.— Photo by INP
A view of long queue of vehicles at CNG Station.— Photo by INP

ISLAMABAD: The CNG sector has reacted sharply to a statement by Petroleum Minister Shahid Khaqan Abbasi that gas will not be available to any sector in Punjab in coming winter months.

Talking to journalists after attending an India-Pakistan young entrepreneurs’ summit here on Tuesday, the minister said the country would face gas shortage in December, January and February not because of a reduction in supply but due to increased demand among domestic consumers.

“But we are confident that the shortfall will be overcome with the import of LNG next year, while Iran-Pakistan gas pipeline will be functional the following year,” Mr Abbasi said, adding that there would be no gas supply to any sector in Punjab, including CNG stations and industries, during winter months.

“Proposal to close CNG stations in winter is illegal which will affect investment, spark inflation, create transportation issues and force millions of people to starve,” Ghiyas Abdullah Paracha, Chairman of the All Pakistan CNG Association’s Supreme Council, said.

“The authorities seem least interested in abiding by the law or ensuring just use of natural gas while putting all the blame on the unfortunate CNG sector.”

He said that instead of focussing on the CNG sector to offset the shortage, the government should stop theft, illegal provision of gas to influential sectors, extra use by some industries and massive leakages.

The association alleged that illegal supply to some powerful sectors, including textile industries, by the petroleum ministry and Sui Northern Gas Pipelines Ltd had created shortage of gas.

“The CNG sector has been facing discrimination at the behest of many mafias, including the highly connected and powerful oil import mafia. We pay the highest gas tariff but get low-pressure supply,” Mr Paracha said, adding that the decision to stop supply to the CNG sector would result in increased import of petrol and trigger unemployment and other social problems. Besides, he said, the government had increased prices of petroleum products to an extent that running vehicles on petrol was becoming unaffordable.

“There is no shortage of gas in the country, but supply is being diverted to influential sectors,” he added.

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