ISLAMABAD: All Pakistan CNG Association on Sunday said the government’s decision to increase gas prices by 31 per cent will translate into a hike of Rs21 to Rs22 in the price of CNG in Sindh, Khyber Pakhtunkhwa and Balochistan.

The province of Punjab will remain immune from the upward revision in the tariff of natural gas as the CNG stations in the province are using imported RLNG, it said.

According to a notification, the price of natural gas for the CNG sector has been increased from Rs980 per mmbtu to Rs1,283 per mmbtu, the highest in a decade, said Ghiyas Abdullah Paracha, a leader of the association.

In a statement issued here, he said the formula for sales tax had also been changed which would increase the cost of the economical fuel from Rs2.25 to Rs2.74 in different provinces.

He said new gas prices were unacceptable therefore the government should resolve the issue through consultations with the CNG dealers and other stakeholders.

The decision will reduce the demand for gas, increase demand for petrol and add to oil import bill as well as environmental pollution, he said, adding increased import of petrol would require foreign exchange.

The decision is detrimental to the survival of Rs450 billion CNG industry which is providing jobs to hundreds of thousands of people.

Closure of the CNG industry will not only hit investments and jobs but also revenues of the government, he added.

Mr Paracha said the government can avoid closure of CNG industry and massive unemployment by accepting the formula of the association.

Published in Dawn, July 1st, 2019