FPCCI chief expresses concerns over increasing losses of CNG stations

FPCCI chief expresses concerns over increasing losses of CNG stations

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mian Nasser Hyatt Maggo expressed his profound concern over the increasing and now unsustainable losses to CNG stations in Sindh due to government policies, RLNG-linked CNG pricing regime, chronic gas outages for CNG stations, and favoritism in supplying indigenous gas to serve vested interests. CNG associations’ leadership informed FPCCI chief that 70-80 favorite CNG stations of the authorities are still getting indigenous gas at Rs1,350/MMBTU and all of the rest at Rs2,040/MMBTU excluding tax. This is huge discrimination and unfair practice.

FPCCI chief said huge investments by CNG stations are in jeopardy and on the verge of closure as the very economic sense of using CNG has been nullified as CNG Stations in Sindh are forced to sell CNG upwards of Rs150/Kg and up to Rs165/Kg. It is worrisome that some 70-80 CNG Stations are still getting indigenous gas and the rest are being discriminated and rendered uncompetitive. Mian Nasser Hyatt Maggo observed that public transport in the province is already in a dilapidated state and inflated CNG will further make it inaccessible to the common man. He added that CNG is an alternate fuel and the whole notion becomes irrelevant if it becomes costlier than conventional petroleum fuels.

FPCCI’s Standing Committee on LNG & Natural Resources convener Junaid Makda said the cost-effective and environment-friendly fuel of CNG is in an existential crisis and it will result in huge unemployment due to closures of CNG Stations. He also said that Sales Tax has been increased from 5pc to 17pc on CNG Stations and has added an extra burden on the profitability and sustainability of the sector. CNG Dealers Association chairman Abdul Sami Khan said CNG stations owners invested billions of rupees to establish this eco-friendly fuel sector in Pakistan to support various government initiatives and now the government has abandoned us. Shabbir Sulemanjee of the CNG Dealers Association pointed out that we agreed to RLNG Regime with SSGC on the premises that CNG Stations will get uninterrupted gas supply, tax incentives, and reduced prices; however, everything has been turned upside down and the exact opposite treatment has been meted to CNG Stations.

Mian Nasser Hyatt Maggo, as president FPCCI, extended his full support to the leaders of CNG Dealers Association to play a mediatory role from the platform of FPCCI to resolve all outstanding issues with government authorities swiftly and reach a win-win mechanism on fair pricing and uninterrupted supply.


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