A recent report suggests that the price of Compressed Natural Gas (CNG) is expected to rise by up to Rs. 9 per kilogram due to the recent proposition of taxes on Liquified Natural Gas (LNG).
The news came from the All Pakistan CNG Association (APCNGA) on Thursday, which also highlighted that the taxes on LNG will increase from the previous rate of Rs. 6 per kg to Rs. 9 per kg.
The report added that the government has suggested an increase in the General Sales Tax (GST) rate of Re-Liquified Natural Gas (RLNG). The increase in the rate would cause several CNG stations across the country to shut down, leading to several thousand people across the country losing their means of living.
Showing his concern pertaining to the recent developments, Ghiyas Paracha, central leader of APCNGA, said that “the impositions of gas development surcharge and increasing other taxes will hurt the gas sector, hurt investment worth hundreds of billions in the CNG sector and send a negative message.”
Paracha added that the government is offering affordable energy to several sectors, whilst favoring the export industry in a bid to offset the import bill. He highlighted that the government must promote the use of CNG as well to bridge the trade gap.
Paracha remarked that almost all sectors have been given some sort of relief in the new budget, with the exception of the CNG sector, which seems to be an unfair move. “Closure of the CNG sector will increase pollution, jack up fares of public transport, increase the oil import bill and budget deficit,” Paracha warned.