Monday, July 05, 2021

CNG price in Punjab moves up following imposition of GST on LNG

According to the All Pakistan CNG Association, the price of CNG has been increased by Rs8 per litre

Image showing a long queue of cars outside a CNG station. Photo: File.

LAHORE: The price of compressed natural gas (CNG) saw a hike in Punjab on Monday. 

According to the All Pakistan CNG Association (APCNGA), the price of CNG has been increased by Rs8 per litre. 

The price hike was witnessed after the federal government decided to increase 12% general sales tax (GST) on liquified natural gas (LNG), the APCNGA said. 

Per the association, CNG in both Punjab and Khyber Pakhtunkhwa (KP) has now been increased from Rs88 to Rs106 per litre. 

Price of CNG increases as gas stations reopen after two weeks in Karachi

Owing to the imposition of GST on LNG, the price of CNG also saw an increase in Karachi when gas stations reopened in the city after two weeks. 

As previously noted, in some areas of the city, the price of CNG increased by Rs30 per kilogramme. 

Consumers in Karachi have complained that pump station owners have fixed the price of CNG at Rs140 per kg, marking an increase of Rs16 per kg in the price of the gas.

Pump station owners said they had to undertake the move in response to the government's move of increasing sales tax on LNG.

The move has sparked panic among the CNG Association of Pakistan, which called an emergency meeting. The association has decided to forward its concerns to the federal government.

In the meeting chaired by Ghiasuddin Paracha, it was discussed that due to an increase in the LNG's import price, and a hike in the GST imposed on LNG, the price of CNG had increased by Rs18 per litre where the gas was being sold in litres.

Where CNG was being sold in kgs, its price had increased by Rs30 per kg, the meeting was informed.