APCNGA demands reduction in taxes

ISLAMABAD: The All Pakistan CNG Association (APCNGA) on Friday said that contrary to the vision of Prime Minister Imran Khan, the price of CNG has seen an unprecedented hike, a statement said.

Despite buying the costliest liquefied natural gas (LNG), additional taxes have been slapped on the CNG sector, which will make it dearer than petrol for the first time in the history of Pakistan, it added.

The gas price will further increase in October and November if the process of buying costly LNG continued, APCNGA group leader Ghiyas Abdullah Paracha said.

The sales tax and Customs duty have been revised upward, which will increase the price of the CNG by Rs18/litre in Punjab and Rs28/kg in Sindh.

The high CNG price will make it unattractive for the consumers that will result in the bankruptcy of this industry leaving hundreds of thousands of people jobless.

He said the dollar is gaining strength against the rupee, which is also contributing to the cost of fuel; therefore, the government should act swiftly to save this industry from total collapse.

Following the notification of the Oil and Gas Regulatory Authority (Ogra), the price of per litre CNG will jump to almost Rs125 in Punjab and Rs192 in Sindh, which will be an unbearable blow to this industry, as it will lay waste to Rs450 billion investment and it will result in a new and devastating wave of inflation.

Paracha said that a delegation of APCNGA has met with the relevant officials and apprised them of the emerging situation, which will result in the closure of CNG stations in Punjab and Sindh.

The government is giving a subsidy of billions to other sectors, which has increased their burden fourfold, while increasing the price of CNG is discrimination, he added.

The government has reduced petroleum levy to zero, sales tax has also been reduced on petrol, taxes on LPG has also been relaxed but the taxes on CNG have been increased, which is beyond understanding and will result in an unprecedented inflation, Paracha said.

The government should immediately intervene and take steps to keep the price of CNG at affordable limits, as the leaders of APCNGA are holding meetings to find a solution to the problem.