ISLAMABAD, July 24: The government on Tuesday announced a 4.3 per cent reduction in CNG prices at public sector stations with immediate effect and advised the private sector to follow the decision.

The announcement was made by Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon while presiding over a meeting of the reconstituted board of governors of the Hydrocarbon Development Institute of Pakistan (HDIP) here.

The minister directed that CNG prices at HDIP stations be reduced from Rs32.50 to Rs31.10 per kg immediately and advised the private sector to reduce their rates as well.

However, the HDIP have only two stations, one in Karachi and another Islamabad, which serve only 3,000 vehicles each a day.

Besides, the ministry could not ask the private sector to reduce prices as they are regulated by the Oil and Gas Regulatory Authority.

On July 1, OGRA had announced about 10 per cent increase in CNG prices for private stations. However, the private stations increased prices by more than 15 per cent. Private stations are charging Rs34.30 per kg in Rawalpindi and Islamabad. The rate is different in various parts of the country.

Mr Jadoon said he had taken the decision to provide relief to consumers.

He said over 100 licenses for offshore and onshore explorations had so far been awarded to local and foreign exploration and production (E&P) companies engaged in oil and gas exploration in the country.

He said more blocks would be offered to boost oil and gas exploration activities vital for overall economic growth.

He appreciated result-oriented efforts being made by the HDIP for disseminating research and development techniques to E&P companies in carrying out their oil and gas exploration activities. He urged the HDIP to equip with emerging sophisticated technologies prerequisite for achieving high success in hydrocarbon discoveries.

The meeting reviewed updated performance of the HDIP and proposed various measures for boasting research and development activities in the petroleum sector.