To discourage use of compressed natural gas (CNG) in the vehicles, government has increased its prices by up to Rs 5.36 per kilogram (kg). The notification for raised prices was issued by the Oil and Gas Regulatory Authority (OGRA) on Tuesday.
A notification with an effect from July 1, issued by OGRA, the prices of CNG has been increased from Rs 74.25 per kg to Rs 76.35 per kg in Region 1 which includes Khyber-Pakhtunkhwa, Balochistan and Potohar. Moreover, the consumers of region 2 which includes Sindh and Punjab, will face an increase of Rs 5.36 per kg and will pay Rs 71.5 instead of Rs 66.14 per kg for CNG. OGRA has sanctioned this hike on the basis of Gas Infrastructure Development Cess (GIDC) imposing a uniform rate of Rs 300 per million British thermal unit (mmbtu) in both regions. Earlier GIDC rate was Rs 263 per mmbtu in Region-1 and Rs 200 per mmbtu in Region-2. The head of the All Pakistan CNG Association Supreme Council, Ghyas Paracha, said the CNG industry has already been facing business failures due to gas load shedding and this hike in prices will add to the miseries of the CNG industry.