CNG industry on the brink: Chairman APCNGA Pervaiz Khan Khattak

Lahore: The All Pakistan CNG Association (APCNGA) on Tuesday said Compressed Natural Gas (CNG) industry is facing discrimination since long and now it is on the verge of total collapse.

Central Chairman APCNGA Pervaiz Khan Khattak in a statement said that the cost of electricity has been revised three times in last one and a half years. Similarly, tariff of natural gas and General Sales Tax has also been hiked in violation of the clear orders of the Apex court.

He said that using diesel generators during power load shedding coupled with other expanses has pushed the CNG industry to the edge that can only survive if government orders upward revision in the price of fuel.

Ogra is not discharging its duty as the regulator is bound to review prices after every six months, which has left notification issued in December 2013 illegal, he said.

Pervaiz Khan Khattak said that running generators during 12-hour loadshedding and fuel adjustment charges hikes cost to Rs 12 per kilogram which is unbearable for the CNG operators.

Government would upward revise prices of energy and taxes unilaterally hurting all the sectors but would not allow jacking up prices of clean fuel which is amazing as well as discouraging, he remarked.

The CNG business will only become somewhat viable if the prices are raised by Rs 10 per kg minimum otherwise CNG operators would be forced to close businesses resulting in massive joblessness, he warned.

APCNGA has informed Ogra and concerned authorities on the situation over one hundred times while FBR officials have been told about it dozens of times but to no avail.

The leader of the CNG sector asked authorities to intervene to save the collapsing CNG sector which is being compromised to benefit well-connected segments.