KARACHI: CNG dealers reopened their business on Monday after a gap of two and a half months, raising prices by Rs10-15 per kg.

The increase came despite suppressed demand for gas, as most people and public transport owners have shifted away from CNG to petrol or diesel.

The filling stations —which were selling CNG at Rs185 per kg ahead of the long closure starting from Dec 1 — are now charging Rs200. Some stations that were selling gas at Rs175 are now selling it for Rs185. Those selling it for Rs195 are now charging up to Rs210.

Dispenser operators at the pumps did not give any specific reason for the price hike.

On the eve of CNG closure on Nov 30, the majority of pumps missed the huge rush of vehicles they used to witness previously a few years ago.

The Sui Southern Gas Company Ltd (SSGCL) allowed the opening of pumps based on regasified liquefied natural gas (RLNG) as per the gas load management plan.

All Pakistan CNG Association Vice Chairman Samir Najmul Hussain said only 150 pumps could open out of the 270 RLNG-based pumps in Karachi.

The consumption of gas on the opening day was just five to six million cubic feet per day (mmcfd)-- even lower than the 13 mmcfd recorded on Nov 30, he claimed, recalling that gas consumption was 85 to 90 mmcfd in mid-2020.

Most gas stations could not resume the sale owing to some pipeline issues, as they remained inoperative for 74 day. Others remained closed, anticipating low demand.

Mr Hussain said CNG prices are higher at franchise pumps of renowned oil marketing companies than at private pumps.

Perturbed by the non-availability of gas and long gas holidays, many consumers had already removed CNG kits and cylinders from their vehicles a few months back. People using cars and rickshaws sold CNG kits and cylinders for Rs4,000-5,000 after switching over to petrol.

Those who did keep them in their cars preferred running their vehicles on petrol to keep the resale value of vehicles intact.

When asked about reports that many private transporters had been filling CNG even during the two-month closure, Mr Hussain said some transporters had managed to get the gas from some stations based in the Hub area. However, a number of transporters had plied buses and coaches on diesel and LPG during this period.

“People will only fully return to pumps on gas availability for 24 hours, as a lingering fear of the suspension of gas supply anytime will keep the buyers away,” he said, adding that much would also depend on the saving ratio in gas compared to petrol.

Currently, the saving ratio in gas stands at 10 per cent than petrol based on the gas price of up to Rs210 per kg and petrol price at Rs148 per litre. He said pump owners had maintained permanent staffers like cashiers, dispenser operators and guards by giving them salaries without any pay cut.

Published in Dawn, February 15th, 2022