Business Recorder Punjab CNG stations: Gas supply suspended for a week

Business Recorder Punjab CNG stations: Gas supply suspended for a week

The Sui-Northern Gas Pipelines Limited (SNGPL) has suspended gas supply to Compressed Natural Gas Stations (CNG) of Punjab for a week. According to new schedule of SNGPL gas supply to the CNG stations is suspended from Thursday which will be re-opened on June 15 after closure of 7 month. 

According to Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA the CNG stations in Punjab will remain closed for a week and gas supply will be restored to the outlets after arrival of fresh liquefied Natural Gas (LNG) shipment, which is expected to reach Karachi on July 1, 2015. 

The restoration of gas supply to CNG outlets of the Punjab is made possible through the imported LNG. The LNG price to CNG stations is $12.8 per Million British Thermal Units (MMBTU), which CNG outlets are selling to the end consumers at 59.8 per litre. The government has exempted the users of LNG from Gas Infrastructure Development Cess (GIDC) and only 5 percent General Sales Tax (GST) against normal 17 percent is imposed on the LNG consumers, the official added. 

According to SNGPL sources the gas utility has attached conditions regarding supply of LNG to CNG outlets which include LNG will be provided to those stations that furnish additional deposits of Rs 1.2 million; due to this condition many CNG stations remained close from June 15 to 25. The local gas was being provided to CNG industry at almost $10 per MMBTU which also included GST and GIDC, which CNG outlets were selling to the final consumers at Rs 75 per kg in Khyber Pakthunkawa and Pothohar Region, while now the commodity is being provided in litrers at same price which means per kg price is around Rs 88. 

A medium CNG cylinder was filled by paying Rs 600 when there was local gas for CNG stations which now costs Rs 750 it means the monetary cost of the commodity has increased by 25 percent but on account of milage it is still cheaper than the petrol as in Rs 750 a normal car covers up to 200 kilometers while in Rs 750 a petrol car covers a maximum 140 kilometers. 

The final price includes the cost of LNG, 4 percent commission for Pakistan State Oil (PSO) and transportation charges of 57 cents per MMBTU to be given to the gas utility. The country has a total 3,495 CNG stations of which 2,400 were in Punjab but after intensification of gas crisis some 700 CNG stations became bankrupt and the owners have shutdown the outlets. Gas supply to CNG stations of Punjab is suspended since November 15, 2014, while in Khyeber Pakhtunkhawa and Balochsitan there is no gas load-shedding for the CNG sector and in Sindh in summer there is no gas load-shedding for CNG stations while in winter CNG stations remain open 4 days a week. The leader of the CNG sector said that the number of CNG stations providing clean fuel to masses would swell to one thousands within few days to provide fuel that is comparatively 30 percent cheaper to petrol.

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