ISLAMABAD: The All Pakistan CNG Association (APCNGA) on Thursday rejected forty percent hike in the tariff of gas terming it the final nail in the coffin on troubled CNG industry.
The closure of CNG industry will lay waste to the Rs450 billion investment and leave many jobless, said newly-elected Chairman of the APCNGA Brig. Iftikar Ahmed (Retd).
Speaking to the Annual General Meeting after being elected, he said that the closure of the CNG industry will increase oil import bill damaging forex reserves and adding to the uncontrollable deficit.
He said that it was claimed that the poor were insulated from the gas price hike which proved otherwise as CNG is consumed by the poor which rich use petrol.
The upward revision in the gas price, additional taxes and hike in electricity rates has reduced the difference between the price of CNG and petrol to unsustainable level leaving it unattractive for investors and pushing the fuel out of the reach of consumers, he informed.
Brig. Iftikhar said that we are not ready to bear the burden of favourite sectors which are enjoying subsidised gas as CNG sector is already paying the highest price for gas while it is paying GIDC of Rs263 per mmBtu while other sectors are paying Rs 100/mmBtu for the same.
He called upon the government to protect CNG sector otherwise the cost of public transport and transportation of goods will jump while masses will have to switch on petrol resulting in heavy losses.
