Gas allocation to CNG sector to help save foreign exchange: official

KARACHI: The All Pakistan CNG Association (APCNGA) has urged the government to allocate 50 million cubic feet per day to the CNG sector until the start of private importation of liquefied natural gas (LNG) for the compressed natural gas sector (GNC), according to a statement.

APCNGA Group leader Ghiyas Abdullah Paracha said he wanted to present this plan to the incumbent government to save about $2.1 billion a year in the fuel import bill and provide a massive relief to the general public in the form of a 50% reduction in the budget. public transport fares.

“Reviving and expanding the CNG sector can generate thousands of new jobs and employment opportunities while using CNG as an alternative fuel for motor vehicles is equivalent to having an environmental benefit of $152.63 million. trees/year,” he added.

According to Parsha, CNG is 10.4% cheaper than the price of gasoline in the country despite the fact that the government provides subsidies on the price of gasoline and has set the tax on oil and gasoline to zero. general sales tax.

He also said that the government can save about 419.87 billion rupees by importing 300mmcfd of LNG into the country and that CNG can be cheaper by 18.63% than the current price of gasoline.

“The general public can get significant 50% fare relief with the use of CNG as a fuel in public transport,” Paracha said.

The leader of the APCNGA group said that the private sector can only be helpful in reducing the deficit if it is allowed to bring LNG for the CNG sector and use the unused capacity of the LNG terminal.

“We assure the government that positive changes can be brought about in no time if the private sector receives timely support and cooperation from the government,” Paracha added.

The head of the APCNGA requested the government to grant permission to use excess (private) terminal capacity of the LNG terminal and permission to use the unused contracted terminal regasification capacity of the LNG terminal.

Likewise, all provincial chief secretaries and transport secretaries should be asked to encourage owners and transporters to convert their public service vehicles to CNG, an environmentally friendly and cheaper fuel.

APCNGA Central Chairman Samir Gulzar said the total 2,300 CNG stations have been established across the country with an investment of around Rs 350 billion, of which 1,100 stations are located in Punjab, Rs 600 stations are located in Sindh and 575 stations operate in Balochistan province.

He said about 50% of the total CNG stations in Punjab have suspended their operation due to non-availability of gas.

Gulzar said the Rs 150 billion investment made in the development of CNG kits was under serious threat due to the closure of CNG stations and the non-availability of gas as fuel for motor vehicles.

Direct and indirect employment in the CNG sector is 510,000, while the total gas consumption required by the entire CNG sector is 400 mmcft, he added.

Khyber Pakhtunkhwa Coordinators Fazal Muqeem and Hazara Region Khalid Latif Vice President Sindh Samir Najmul, Potiohar Region Coordinator Sajjad Hyder and APCNGA Executive Board Member Chaudhry Salah ud Din were also present. occasionally.

Comments are closed.