PESHAWAR: The All Pakistan CNG Association on Wednesday asked the federal government to immediately withdraw increase in gas tariff to protect the CNG industry from devastation.

APCNGA KP Zone chairman Fazal Muqeem Khan told reporters at the Peshawar Press Club that the CNG sector, which was already facing multiple problems, would become unattractive for investors after the increase in gas price.

He feared that the Rs450 billion investments in the industry would go to waste, while hundreds of thousands workers would lose job.

Mr Fazal said higher gas price would increase CNG rate by Rs18-20 per kg.

Accompanied by general secretary of the association Mohammad Khaleequr Rehman, vice chairman Haji Mohammad Iqbal and other leaders, he said the general sales tax, advance tax and other taxes collected from CNG sector would also go up.

He said the transport fare would go up by 40-50 per cent causing misery to poor people.

The association chief said the gas tariff increase and artificial shortages in Khyber Pakhtunkhwa were a violation of the 18th Constitutional Amendment.

He said the CNG industry deserved to be protected from gas price hike otherwise the people using the cheap fuel would have to switch to petrol, which would collectively cost them billions of rupees.

Mr Fazal demanded of the government to protect the CNG industry from the devastating impact of higher gas price in the ‘larger national interest’.

He said the petroleum and natural resources minister claimed that the people of Khyber Pakhtunkhwa and Sindh had smooth gas supply but the ground realities in KP belied that claim.

“The residents of KP are subjected to low gas pressure, artificial gas shortages and heavy taxation,” he said.

The association chief urged the federal government, prime minister, petroleum and natural resources minister and finance minister to immediately withdraw the increase in gas price.

He said a delegation of the APCNGA would meet the federal petroleum and natural resources minister on Monday and if it didn’t get satisfactory response on gas price hike, then all options would be explored.

Published in Dawn, September 20th, 2018