KARACHI: Dealers in the city have started black marketing of CNG kits and cylinders by charging Rs5,000-15,000 more from the buyers in just 24 hours of the government’s decision of imposing ban on import of CNG kits and cylinders.
Those CNG conversion centres, who were previously demanding Rs25,000 for new 50-kg capacity cylinder with kit depending on kit size, on Friday jacked up the rates to Rs33,000. The 60-kg cylinder with kit now carries a price tag of Rs42,000-45,000 as compared to Rs38,000. The 40 kg cylinder capacity with kit is now tagged at Rs30,000 as compared to Rs25,000 depending on kit size.
Some dealers at the new M.A. Jinnah Road were seen demanding Rs10,000-Rs15,000 extra for 60 kg cylinder with kit.
Many dealers offered excuse to consumers saying they did not have cylinders at their shops asking them to contact on Saturday or Monday next week.
The government’s decision has literally given an instant shock to the new buyers of CNG kits as they do not know whether the decision is just for winter season in the backdrop of prevailing gas shortage or it is permanent.
Many big dealers with sizable stocks in their godowns offered excuse to buyers for non-availability of CNG kits and cylinders in a bid to make more profits in coming days depending on demand and supply situation.
It is not clear about the stock situation of cylinders in the markets but some dealers said thousands of cylinders were awaiting clearance at the ports. In such circumstances the government usually issues orders for clearance of goods which are inpipeline or already arrived at the ports.
Some dealers said the situation may get normalise soon as the government was contemplating to further increase the rates of CNG thus making it less competitive against petrol. CNG Dealers Association Chairman Abdul Sami Khan confirmed to Dawnthat the prices of different capacity CNG cylinders with kits surged by Rs5,000 to Rs15,000 after the government decision.
He said that the government was bent upon discouraging the use of CNG as it was making efforts to encourage the use of LNG and LPG despite the fact the two fuels were much costlier as compared to CNG.
Sami said after the ban smuggling of substandard cylinders from India and other countries would increase risking lives of people as explosions of such cylinders in cars and public transport have already claimed hundreds of lives.
He said the government had already indicated fresh increase in natural gas prices from January 1, 2012, which the industries and CNG dealers have strongly opposed.
In another move, he said the government was considering raise in gas development charge (GDC) which will be adjusted in the profit of CNG dealers.
Central Chairman of All Pakistan CNG Association Ghiyas Abdullah Paracha while rejecting the ban on import of CNG kits and cylinders demanded the government to revert the decision.
He said the government had not consulted the stakeholders on this issue and it was against the decision of the Supreme Court which ordered to convert all the public transport on CNG to decrease petroleum import bill and pollution.