APCNGA briefs minister about bottlenecks in LNG, natural gas supply

ISLAMABAD: Finance Minister Shaukat Tarin has constituted a committee, comprising Federal board of Revenue (FBR) and the Oil and Gas regulatory Authority (Ogra) chairmen, representatives of the Petroleum Division and All Pakistan CNG Association chairman to resolve the problems being faced by the CNG sector in the import of liquefied natural gas (LNG) and supply of natural gas.

A delegation of the All Pakistan CNG Association (APCNGA), led by its chairman Khalid Latif, called on the finance minister at the Finance Division on Monday and briefed him about the operations of the CNG sector in Pakistan.

CNG was launched in Pakistan as an environment-friendly and alternative fuel with the primary objective to curtail costly import of petrol, Latif said, adding that the overall investment in the CNG sector is around Rs450 billion over the last 15 years.

He also underlined the challenges being faced by the CNG sector, at present, due to the massive fluctuations in the international prices of LNG along with the depreciation in the rupee, which has made CNG relatively expensive, compared with the petrol in the domestic markets.

The surging CNG prices have undermined its attraction as a fuel of choice for the local consumers. The chairman also presented a comparative analysis between retail prices of CNG and petrol.

Finance Minister Tarin said that the Covid-19 pandemic has affected the international prices of petroleum products, including LNG due to the supply side disruptions.

The government has sustained the pressure and provided maximum relief to the consumers by keeping the petroleum levy at the minimum.

The finance minister reiterated the resolve to help CNG users’ affordable prices for their fuel and said the government is trying to reform and liberalise the gas sector so that it can develop rapidly.

He directed the finance, petroleum secretaries, FBR and Ogra chairmen and other officials to hold meetings with the APCNGA officials, look deeply into their demands and furnish recommendations to reduce taxes and improve supply.

FBR chairman Muhammad Ashfaq Ahmed, Ogra chairman Mansoor Khan, senior officials from the Petroleum Division and representatives of the FPCCI also participated in the meeting.