The CNG sector is requesting a bailout
KARACHI: The All-Pakistan CNG Association (APCNGA) said on Monday the CNG sector had collapsed due to an economic slowdown, and needed an urgent bailout package from the government.
The government must move to save Rs450 billion investment in the CNG sector, which also provides direct and indirect employment for millions of people, said APCNGA Central Chair Ghiyas Abdullah Paracha.
In a letter written to Prime Minister Imran Khan, Paracha said that reducing oil prices had provided assistance to the masses, but also minimized the difference in the prices of gasoline and CNG, which had stopped industrial sales from putting environmentally friendly fuels on the stake.
“The CNG sector can only survive if the government allocates one hundred thousand rupees of monthly grants to each gas station for three months and announces other measures,” he said.
The CNG sector leader said the tax cut must be reduced from the existing four percent to two percent, industrial power rates must be permitted, while the MDI costs included in the electricity bill should be stopped at 10 percent. He said the costs of gas distribution and regasification must be reduced, while the GIDC must be eliminated completely. Gas tariffs for CNG filling stations using local gas must be reduced by 35 percent so this business can become feasible.
He also demanded the release of a five percent import duty on LNG imports so that prices could be lowered for customers and consumers.
“The private sector can provide very good results if it is permitted to take part in the LNG supply chain. The eager private sector has the ability and willingness to reduce LNG prices substantially to benefit the entire population, therefore, it must be isolated from the bureaucracy, “he demanded. He said the transportation sector should be encouraged to convert CNG to reduce urban pollution.
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