HomeBusinessParacha suggests allocating 50 MMCFD gas to CNG sector for curtailing oil...

Paracha suggests allocating 50 MMCFD gas to CNG sector for curtailing oil import bill, transport fares

ISLAMABAD, Jun 07 (APP): All Pakistan CNG Association (APCNGA) Group Leader Ghiyas Abdullah Paracha on Tuesday asked the government to allocate 50 Million Cubic Feet per Day (MMCFD) gas to the CNG sector for curtailing the country’s annual oil import bill by $2.13 billion and a 50 per cent reduction in public transport fares.

“Foreign remittance can be saved by approximately $2.13 billion per annum, while a 50% cut in public transport fares is also possible if the government allocates at least 50 MMCFD gas to the CNG (Compressed Natural Gas) sector till the commencement of Liquefied Natural Gas (LNG) import by the private sector for the CNG industry,” he said while addressing a news conference.

Paracha opined that with the revival of the CNG sector, there would be great job opportunities and reduction in environmental pollution.

”Revival/expansion of the CNG sector can generate thousands of new employment/job opportunities while the use of CNG as an alternative fuel for motor vehicles is equivalent to having an environmental benefit of 152.63 million trees per annum,” he added.

He said the CNG was still inexpensive than the prevailing petrol price and it would become cheaper if the private sector was allowed to import LNG for the CNG sector.

At present, Paracha claimed, the CNG was 10.4 per cent cheaper than the prevailing price of gasoline in the country while the government was giving subsidies in petrol price and had fixed the petroleum levy (PL) and General Sales Tax (GST) at zero level.

The APCNGA leader said if the private sector was allowed to import LNG for the CNG sector, approximately $2.135 billion (Rs419.87 billion) could be saved with the import of 300 MMCFD LNG and the CNG would be cheaper by 18.631per cent than the current gasoline price.

Paracha also suggested the government to grant permission to use the surplus (private) terminal capacity of LNG terminals for the revival of CNG sector.

RELATED ARTICLES

Most Popular