CNG Sales Hit Rock Bottom Forcing Stations to Shut Down

The recent price increases have rendered CNG an unfavorable choice for motorists. All Pakistan CNG Association (APCNGA) corroborated this claim, adding that all members have announced an indefinite closure as CNG sales have hit rock bottom due to recent price hikes.

Chairman of APCNGA Sameer Anjum told The News that the majority of stations have ceased operations across Sindh, with only a few still working. “Sindh-based (CNG Station) owners have now followed Punjab, where the CNG outlets have been closed for the last two months,” Anjum said.

He highlighted that the government’s tactics and policies have caused the CNG industry to shrink. Khyber Pukhtunkhwa-based outlets are running on local gas, while Balochistan doesn’t have many CNG stations, to begin with. “Most of the CNG stations in the country operate in Sindh and Punjab and sell imported RLNG (Regasified Liquefied Natural Gas),” he added.

Anjum claimed that the government also charges CNG stations for the supply of unaccounted for gas (UFG). “It is a sheer injustice with the CNG stations as they are also paying for UFGs,” he regretted.

Rate Hike

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.

The government-imposed GST will affect each region differently. Region one consists of Khyber Pakhtunkhwa, Balochistan, and Potohar Region. More particularly:

  • Rawalpindi, Islamabad, Gujar Khan, and surrounding areas, saw a hike worth Rs. 140 per kilogram (kg) from Rs. 134.57/kg in the gas supply rate. This amounts to an increase of Rs. 5.43/kg or 4 percent.
  • Sindh and Punjab saw an increase of Rs. 135 per kg from Rs. 128.11/kg in the gas supply rate. This amounts to an increase of Rs. 6.89/kg or 5.37 percent.

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.