CNG Prices Increase as GST Increases

As if the people were not over ranting about an increase in petrol prices yet, now there is news that compressed natural gas (CNG) prices are also increasing in the wake of an increase in sales tax by FBR.

In Punjab, the per litre hike is Rs 6.89 while it is Rs 10.30 in the rest of Pakistan, as communicated by stakeholders on Tuesday.

It is noteworthy here that only in October, the prices were raised by Rs 8 per litre in Punjab and Rs 15 per litre in Karachi.

Samir Najmul Hussain, All Pakistan CNG Association (APCNGA) Coordinator for Sindh Zone, said that “The new price of CNG in Karachi has swelled up to Rs200 per kg.”

Earlier, CNG prices were Rs 123 per kg in Sindh and rose to Rs 185-195 per kg because of the high cost of regasified liquefied natural gas (RLNG).

Mr Hussain further added, “CNG still provides a saving of five per cent if compared to the vehicle running on petrol as the fossil fuel price had been persistently on the rise.”

Ghiyas Paracha, Group Leader APCNGA, said the new rate of CNG in Punjab is now Rs140 per litre due to the increase in GST.

He continued, “In a notification issued by the FBR on November 15, 2021, relating to sales tax, the base price in the Region 2 has changed to Rs134.57 per kg from Rs74.04 per kg while for Region 1, the base price has been fixed at Rs128.11 as compared to Rs69.57 per kg.”

“Running vehicles on gas will still ensure 8-9% savings to the vehicles’ owners in view of rising price trend in petrol,” he added.

Mr. Paracha further said, “The government is reducing GST on petrol while raising it on CNG which is unjustified. The government should refrain from increasing taxes and victimising gas users in view of record-high rates of LNG and losing rupee value against the dollar.”

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