The Pakistani government has increased the price of Compressed natural gas (CNG) across the country after the federal government hiked the General Sales taxes by five to six percent. According to media reports, the government released an official notice on Thursday informing of the application of a sales tax on CNG supplies.
Price of CNG in Pakistan:
CNG prices are increasing in Pakistan. One kilogram of CNG costs Rs 300 in this country. The Dealers Association claims that the government wants to shut down the CNG industry and has hiked prices without consulting the industry. CNG was a low-cost fuel, but the massive price increase would eliminate its demand in the country.
Region-based CNG Price:
The government has implemented CNG Prices on a region-based. The All-Pakistan CNG Association (APCNGA) announced that all CNGs in Punjab and Sindh Pakhtunkhwa, Baluchistan, and Potohar that run on imported RLNG will be charged higher prices effective immediately.
Region one is consist of Sindh and Punjab where the government has raised the cost of gas delivery from Rs. 128.11/kg to Rs. 135 per kg. This is a 5.37 percent increase in the price of Rs. 6.89 kg.
Khyber Pakhtunkhwa, Balochistan, and Potohar make up Region two. The government has increased the value of gas supply in Rawalpindi, Islamabad, Gujar Khan, and nearby districts to Rs. 140 per kilogram (kg) from Rs. 134.57kilogram (kg). This is an increase of 4 percent in the price of Rs. 5.43 kg.
CNG Dealers Association Statement:
Abdul Sami Khan, Chairman of the CNG Dealers Association stated that this strategy is threatening the CNG industry’s survival. He demanded of the government immediately reduce the sales tax on imports of LNG like petrol and LPG so that the fuel of the poor could be cheaper. The government provides RLNG to the CNG industry at discounted rates.
