KARACHI, Jan 2: CNG dealers in Sindh, particularly in Karachi, have decided to increase gas rate by Rs2.50 per kg to Rs36 from Rs33.50 per kg following an Ogra decision to increase gas rates for CNG stations by 10 per cent.

In other areas of the country, CNG prices would go up by Rs1.85-2.99 per kg.

On the other hand, LPG retailers charged Rs68-70 per kg on Wednesday as compared with Rs65 per kg just one day ahead of Eidul Azha. Gas was available at Rs56-58 per kg a week back before Eid.

In Punjab, especially in Lahore, LPG is selling at Rs80-100 per kg.

An LPG distributor said there had been a gap in demand and supply from Thursday to Monday after the assassination of PPP leader Benazir Bhutto as two main producers in Sindh — Jamshoro Joint Venture Limited (JJVL) and Boby Field — had to shut their plants.

Coming back to CNG, some pump owners have already started charging higher rates from consumers from Wednesday evening while a majority of them would implement the new price from Thursday morning, a CNG dealer said.

The announcement regarding price increase in CNG had not been made by the two associations — CNG Dealers Association and CNG Station Owners Association — as rates are decided on their own by the dealers, he added.

Dealers have increased the rate in Lahore by Rs2.29 followed by Rs1.85 in Rawalpindi, Rs2.90 per kg in Peshawar, Rs2.05 in Sargodha, Rs2.99 per kg in Hazara and Rs1.85 per kg in Hassan Abdal.

However, he said the increase in CNG price would not make any adverse impact on its sale as it still attracts car owners in terms of saving as compared with petrol.

He said after the rise in CNG prices, the saving percentage has declined to 50 per cent as compared with petrol. Prior to increase in CNG prices, there was a 54.5 per cent saving.

The population of CNG cars has increased to 1.628 million with 1,923 stations all over the country.

In July 2007, Pakistani roads were flooded with 1.21 million vehicles and 1,400 stations were in operation.

Pakistan may outclass Brazil and Argentina in the population of CNG vehicles.

Some 7,000 to 8,000 vehicles are being converted into CNG every month while some 3,000 new factory-fitted CNG cars are finding their way to roads from the local assembly plants.

While the population of CNG vehicles is on the rise, many people have set up gas stations on main busy roads near residential areas.

At the peak hours of filling by car owners, residential areas face problems of low gas pressure. Both the Ogra and other authorities are not taking this consumers’ problem seriously.

However, CNG Station Owners Association chairman Malik Khuda Bux pointed towards another problem by saying that about 70 per cent of CNG filling stations in Punjab (1,211 stations) and NWFP (296 stations) are facing problem of extremely low pressure gas supply.

Instead of 15 PSI gas pressure, these stations are getting three to four PSI which is damaging the filling equipment as these equipment cannot be operated below eight PSI, he said.

The SNPGL is supplying 1,800mmcf gas per day in its franchised network while the demand has increased to 2,200mmcf due to cold weather. However, CNG stations in Sindh are not facing problems.