KARACHI, Sept 6: The increasing use of compressed natural gas (CNG) and liquefied petroleum gas (LPG) in vehicles continues to give jerk to the petrol sales, which fell to 99,134 tons in July 2006 compared to 100,493 tons in July 2005.

The petrol sales has already declined by ten per cent in 2005-06 during which a total of 1.322 million tons was sold as compared to 1.183 million tons in 2004-05, figures from Oil Companies Advisory Committee (OCAC) reveal.

Market analysts see further decline in sale of petrol in case its price maintained its upward trend due to political unrest in the Middle East.

The petrol sales have declined by ten per cent despite 22 per cent increase in car sales in 2005-06 to 155,514 units as compared to 127,309 units in 2004-05. The rolling out of the majority factory fitted CNG cars by the assemblers is another reason for decline in petrol sales.

Besides, the country had import of over 45,000 used cars, jeeps and sports utility vehicles (from Japan and Dubai) in 2005-06 as compared to only 11,877 units in 2004-05.

On the contrary the sale of motorcycles was recorded at over 700,000 units in 2005-06 as compared to 350,000 units in 2004-05. The two-wheelers are the only source of providing some breather to the petrol sellers till today.

However, some people, who could not afford to pay high petrol prices, have started installing LPG cylinder and kit in their bikes at a price ranging between Rs1,500--2,500.

The main reason for decline in petrol consumption in vehicles is its phenomenal price hike during the last few years, forcing the buyers to switch over to cheaper mode of fuel like CNG and LPG. Petrol now sells at Rs57.88 as compared to Rs33.81 per litre in June 2001.

Except for higher engine capacity cars like Honda Civic, Honda City, Toyota Corolla etc-- Pak Suzuki Motor Company Limited (PSMCL), whose market share is over 50 per cent of total car sales, is now rolling out Mehran, Alto, Cultus and Liana with factory fitted CNG.

Indus Motor and Dewan Farooqui Motors also offer CNG fitted Daihatsu Cuore and Hyundai Santro, respectively.

However, market reports are ripe that Indus Motors is planning to roll out factory fitted CNG Corolla models. In case it happens then Honda Atlas may follow suit.

General Manager Marketing Pak Suzuki Motor Company Ashfaq Hussain said that the company was now getting 75 per cent advance booking orders for factory fitted CNG cars as compared to 60 per cent last year.

The trend of installing CNG in cars will further rise in case petrol prices go up further. “I think there is still a saving of 60 per cent while running the car on CNG as compared to petrol,” he said.

On July 4, 2006 the CNG prices had increased to Rs33 from Rs31 per kg following an increase in gas rates by the Oil and Gas Regulatory Authority (Ogra).

In January, 2006 the CNG station owners had enhanced the CNG price by Rs2 to Rs2.40 per kg depending on the area location from Rs29 per kg.

The popularity of the CNG can be gauged from the long queues at the CNG stations, while the petrol dispensers are either remained idle or have one or two cars waiting for re-filling purpose.

The rush of cars at pumps has not decreased because the CNG stations are receiving eight pound per square inch (PSI) of pressure from Sui Southern Gas Company Limited (SSGC) as against the demand of 15 PSI.

Karachi has limited pumps providing CNG facility, which do not meet the rising demand. It is really hard to set up a CNG station owing to high price of land and the procedural bottlenecks.

A CNG dealer said that the SSGC demands extra money from the station owners for increasing gas pressure to 15 PSI from eight PSI as it says that it has to lay extra pipeline. The company, however, says that it would not charge extra money from some CNG stations (15 per cent of the total) where pipeline facility is available, he said.

In sharp contrast, more than 90 per cent pumps in Punjab receive gas at 15 PSI pressure from Sui Northern Gas Pipeline Limited, the dealer said.

LPG is also getting popular in vehicles, especially in rickshaws, taxis and private vehicles in cities like Karachi, Lahore, Faisalabad, Gujranwala and Rawalpindi despite government’s ban on its use in the auto sector few years back.