The government has increased the rate for CNG due to the enactment of the General Sales Tax (GST) of 5 to 6 percent across Pakistan. As per a media report, the government issued an official notification on Thursday which informed of the sales tax imposition on CNG supply.
The government has imposed GST based on region. Region one consists of Khyber Pakhtunkhwa, Balochistan, and Potohar Region. More particularly, in Rawalpindi, Islamabad, Gujar Khan, and surrounding areas, the government has hiked the value of gas supply to Rs. 140 per kilogram (kg) from Rs. 134.57/kg. This amounts to an increase of Rs. 5.43/kg or 4 percent.
Region two consists of Sindh and Punjab only, where the government has increased gas supply value to Rs. 135 per kg from Rs. 128.11/kg. This amounts to an increase of Rs. 6.89/kg or 5.37 percent.
CNG station owners are already on the edge due to repeated suspensions of gas supply, and the price increase is likely to add fuel to the fire. CNG station owners believe that the government’s policies heavily favor Oil Marketing Companies (OMCs). They think that this tactic is putting the CNG industry’s well-being in jeopardy.