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CNG sector warns of consequences from increased gas prices

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September 18, 2018: The All Pakistan CNG Association (APCNGA) on Tuesday called for the insulation of the sector from the hike in gas prices attributing the increase in the price of natural gas as the reason that could leave the already troubled CNG sector unviable going forward.

The association said that the CNG sector which is already facing multiple problems will become unfeasible after the gas price hike which would waste investments of Rs 450 billion in the industry and leave hundreds of thousands unemployed.

The non-viability of the limping CNG sector will add to the oil import bill, increase the budgetary deficit and enhance environmental pollution, said Ashar Haleem, Central Chairman of APCNGA.

He said that CNG sector is already paying more than any other sector for natural gas while an additional burden of forty percent on this sector will be unbearable, as it will increase the price of fuel by Rs 18-20 per kilogram.

The price of gas for the CNG sector has been revised upwards from Rs 700 to Rs 980 per mmbtu, he informed.

Increased price of the fuel will result in little difference between the price of gas and petrol while masses will be deprived of economical fuel resulting in may problems including the high cost of transportation, he said.

Ashar Haleem said that CNG industry deserves to be insulated from the hike in the price of natural gas otherwise masses using this fuel will have to switch on petrol which will collectively cost them billions of rupees.

He demanded of the government to protect the CNG industry from the devastating impact of the recent decision in the larger national interest.

Posted on: 2018-09-18T18:07:00+05:00

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