KARACHI, Dec 30: CNG vehicle owners will have to pay Rs1.25 per kg more from January 1, 2006 after CNG dealers and station owners have unanimously increased its price. The CNG will now cost Rs30.25 as compared to Rs29 per kg in the Sindh and Balochistan region.

The decision was taken by the Chairman, FPCCI standing committee on CNG, oil and gas, Abdul Sami Khan, who is also Chairman of the CNG Dealers Association, in a joint meeting held here on Friday with the CNG Station Owners Association.

The CNG price was raised by Rs1.25 per kg against the actual impact of Rs1.80 worked out at the meeting, Mr Khan said.

In a press release issued by the FPCCI, Mr Khan said: “The increase of Rs1.25 per kg will effective from January 1, 2006 throughout the country.”

However, when asked that CNG Station Owners Association Chairman Malik Khuda Bux expressed doubt about the uniformity in CNG rate in all the four provinces, Mr Khan said that due to a difference in gas rates, increased by SNGPL and SSGCL for the CNG sector, there might be a possibility of price difference in the Punjab and NWFP region.

Later he told Dawn that despite the increase in CNG price, there would still be consumption and cost wise saving by 45-50 per cent as compared to petrol.

He claims that around 750 stations are operational across the country, while around one million vehicles have so far been converted into cheaper mode of fuel.

In reply to a query regarding long queues at CNG stations, he blames the government policy for this. “On the one hand the government encourages the use of CNG, but on the other hand, its departments have been creating bottlenecks by engaging new investors in various paper and office works for setting up new stations.”

He said that some 50 new stations could be easily set up in Karachi right now, but the government departments are dilly-dallying in giving a go ahead signal.

Malik Khuda Bux said that Mr Sami Khan was a bit quick in announcing the CNG rate. He said there would certainly be a price difference in Punjab and NWFP as compared to two other provinces owing to a disparity in gas rates announced by the utility companies. The confusion over price difference in CNG is likely to clear on December 31, he adds.

He gave a different figure by stating that 811 CNG stations are in operation throughout the country, while over 900,000 vehicles have been converted into CNG.

About the delay suffered by the consumers at CNG stations, he claimed that the situation would improve shortly as the gas company was increasing the pressure to 15 psi from eight psi.