KARACHI: The price of compressed natural gas (CNG) is likely to be increased by Rs22 per kilogram following the 40 per cent hike in the gas tariff, it emerged on Saturday.

The new price is likely to be implemented from next week after the issuance of a notification regarding hike in gas tariff — Rs980 MMBTU from Rs700 MMBTU — from Oct 1.

For the first time in the country’s history, the CNG price will reach around Rs105 per kg from the current price of Rs 81.70 per kg.

Speaking at a joint press conference here, CNG stakeholders said the industry was continuously facing destabilisation due to the policies of the government since it first resorted to forced loadshedding of three days in a week and now increased the tariff by 40pc.

The proposed gas price increase would result in a lower price differential parity between petrol and CNG besides pushing up public and private transport fares as 70pc of buses were being run on CNG, they added.

The leaders said the determination of the hike in gas price was related to the estimated revenue loss reported by the Sui Southern Gas Company in their public petition presented to the Oil and Gas Regulatory Authority and based on these reports Ogra determined the suggested increase.

They believed that the hike in gas price appeared to be a deliberate plan to convert CNG stations in Sindh, KP and Balochistan to LNG to benefit LNG terminal operators.

Published in Dawn, September 30th, 2018