On Thursday, it has been reported that CNG dealers startled their consumers before Eid, by increasing the cost of compressed natural gas (CNG) by Rs. 2 per kg that is, from Rs. 75 to Rs. 77 per kg.
The CNG stations were closed for the preceding two days, Tuesday and Wednesday, before the announcement of this news.
On Thursday, the CNG stations were flooded with buyers from all over the city as soon as the news became public.
The cost of CNG fuel has been increasing since December 2016, when the decision to deregulate this sector was finalized. After the deregulation, the price of CNG rose to Rs. 67.50 per kg and it served as a golden chance for the dealers to increase prices according to their own requirement.
The cost of CNG has been increasing at the rate of Rs. 10 per kg since Dec 2016.
A CNG dealer revealed that the dealers were given free hand to increase the prices on their own after the deregulation and that the association is not involved in this matter.
He told that from Thursday, CNG will be available according to the new prices all across Sindh.
The chairman of All Pakistan CNG Association Sindh Zone, Shabbir Sulemanji disclosed that before July 2017, there was only four percent withholding tax on gas consumption.
But now the government has also included an additional tax along with the withholding tax, which has increased the gas bill up to Rs. 1 to Rs. 2 per kg. Other than that, the calorific cost of gas has also been increased.
He further revealed that the cost of CNG in other provinces is higher as compared to the prices in Sindh. He added that the cost of CNG in Punjab is Rs. 80 per kg whereas in KPK the cost varies between Rs. 82 to Rs. 83 per kg.