KARACHI, March 20: Dealers have further enhanced the price of compressed natural gas (CNG) to Rs37 from Rs36 per kg in Karachi with effect from Saturday.
The dealers had earlier pushed up rate to Rs36 from Rs33.50 per kg in January, following a decision by the Oil and Gas Regulatory Authority (Ogra) to increase gas rates for CNG stations by 10 per cent.
CNG Dealers Association Chairman Abdul Sami Khan told Dawn on Thursday that the rate had been increased owing to rising power charges and increasing running cost of diesel generators and water charges by tankers.
He said the dealers had been forcing the association to increase the rate owing to rising cost of various items.
In sharp contrast, the CNG dealers in the Punjab have increased the rate by Rs2.50 per kg despite a directive by the CNG Dealers Association not to charge extra money.
Abdul Sami Khan said the association could not take action against dealers in the Punjab where there was no control on its rate. Besides, there is a vast difference in the rate in the entire Punjab, while in Karachi consumers find uniformity in the rate. Even rates in Peshawar are very high as compared to Punjab and Karachi.
He pointed out that actually the cumulative impact of increase in the input cost comes to Rs1.50 per kg, but some dealers are arbitrarily charging Rs2.50 per kg.
The increase in the CNG price is unlikely to make a negative impact on its sale because petrol price has increased by Rs9 per litre. CNG would still attract more car owners in terms of saving, as compared with petrol.
He said that after the increase in CNG prices, the saving percentage would still be 40 per cent as compared with petrol. However, if CNG rate would have been Rs31 per kg and petrol at Rs62 per litre, there would have been a 50 per cent saving.
The population of CNG cars increased to over two million from 1.628 million in January this year, with the existing 2,200 CNG stations, as compared to 1,923 stations in January all over the country. In July 2007, there were 1.21 million CNG vehicles in the country, with 1,400 stations.
He said the caretaker government inflicted a blow to the CNG sector by putting a ban on new CNG stations after a heavy pressure from the textile sector, which complained about no pressure in the pipelines.
Some 7,000 to 8,000 vehicles are being converted to CNG every month. A spokesman for the Pak-Suzuki Motor Company Limited (PSMCL) said more than 80 per cent new cars and other vehicles are being rolled out with factory-fitted CNG.
About long queues at CNG stations, Sami Khan said now these queues have subsided to some extent as many new stations are getting 15psi of gas pressure from the SSGC while many old pumps are in the process of getting enhanced pressure, as compared to eight (psi) gas pressure.
