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Sunday, October 2, 2022

Petroleum prices remain unchanged but CNG price climbs to record 300/kg

In the recent development, the government decided to keep the petroleum prices unchanged for the fortnight but increased the CNG price to record high of Rs 300 per kilogram.

The indecisiveness about the petrol and diesel price is costing Pakistan dearly although the government wants to remove the subsidies on petroleum products in phases.

Due to looming economic crisis and surge in international oil prices, the government may hike the prices of petroleum products.

Taking his Twitter handle, Finance Minister Miftah Ismail clarified on Sunday, “Due to changing circumstances and international oil prices, we may have to revisit our decision soon.”

However, at the same time, Compressed Natural Gas (CNG), the once considered the cheapest fuel has reached an all-time high of Rs. 300 per kg (about Rs. 195 per litre). CNG merchants have refused to accept the price increase, claiming that the government aims to phase out the industry.

PM Imran Khan address to the Nation. Petrol, Diesel price reduced by Rs. 10 per liter, Electricity price reduced by Rs.5 per unit

The government forbade the private sector from importing Liquefied Natural Gas (LNG) on its own, and the government itself could not import LNG. The delayed import caused CNG stations to close and billions of dollars in investment to be lost in the CNG industry.

According to CNG dealer Abdul Sami Khan, the government plans to phase out the CNG industry. RLNG’s price was likewise raised without consultation.

CNG prices have been raised from Rs 230 to Rs 300 per kg, according to Abdul Sami Khan. Billions of rupees have been squandered in this sector. He claimed that while CNG was a low-cost fuel, no one would buy it presently.

He suggested that the government provide RLNG to the CNG industry at a lesser price. If the government is unable to deliver RLNG at a lower cost, CNG should be phased out.

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