CNG Sector Asks for Bailout Package to Avoid a Collapse

All Pakistan CNG Association (APCNGA) on Monday said the CNG sector is collapsing due to the economic slowdown and it requires an urgent bailout package from the government.

The government should move to save Rs. 450 billion of investment in the CNG sector which is also providing direct and indirect jobs to millions of people, said Ghiyas Abdullah Paracha, Central Chairman APCNGA.

In a letter written to the Prime Minister Imran Khan. Ghiyas Paracha said that reduction in oil price has provided relief to masses but it has also minimised the difference in the prices of petrol and CNG which has halted the sale of environmentally friendly fuel putting their business at stake.


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The CNG sector can only survive if the government allocates one hundred thousand rupees monthly grant to every filling station for three months and announce other measures, he said.

The leader of CNG association said that withholding tax should be reduced from the existing four percent to two percent, industrial power tariff should be allowed while the MDI charges included in the electricity bills should be halted at ten percent.

He said that gas distribution and regasification charges should be reduced while GIDC should be completely abolished. Tariff of gas for CNG filling stations using local gas should be reduced by 35 percent so that this business can become viable.

He also demanded waiver of five percent customs duty on import of LNG so that its price can be brought down for customers.

Ghiyas Paracha said that the private sector can give excellent results if it is allowed to take part in the LNG supply chain. The vibrant private sector has the ability and will to bring down LNG prices substantially to benefit the entire population, therefore, it should be insulated from red tape, he demanded.

He said that the transport sector should be encouraged to convert on CNG to reduce urban pollution.

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