City CNG dealers not to increase rates

Published December 15, 2006

KARACHI, Dec 14: The rate of compressed natural gas (CNG) in the city is expected to stay at Rs31 per kg as two Karachi-based CNG associations have refused to follow their counterparts in Punjab who have increased the gas rates against an Ogra advice.

Mr Abdul Sami Khan, chairman, CNG Dealers Association, said the association, in an emergent meeting on Thursday, decided “not to increase the CNG rates immediately.”

Gas prices are reviewed by the government after every six months and the next review is due on Jan 1 when decision regarding increase or decrease would be taken, he said.

“The association follows Ogra rules and regulations, and the association would discuss the issue with the Ogra before taking any decision concerning CNG rates.”

Mr Sami Khan said a fake body had been claiming that the Ogra had allowed them increase in rates, which was wrong.

“Ogra has always invited the Karachi-based CNG body before taking any decision,” he added.

To a question long queues are witnessed at pumps and these have not reduced despite opening of many CNG stations, he said the CNG stations had been receiving gas with low pressure because of rising gas consumption in residential areas in winter.

He did not agree with the claim of the gas company regarding separate connections of gas for CNG stations.

“Only 20 per cent of pumps have separate connections while the rest rely on gas supply from the same residential pipelines distribution system,” he said.

Chairman, CNG Station Owners Association, Malik Khuda Bux, said that the association would not increase the CNG rates.

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