On Monday, a delegation from the All Pakistan CNG Association (APCNGA), led by its chairman Khalid Latif, paid a courtesy call on Finance Minister Shaukat Tarin at the Finance Division of the ministry.
The meeting was attended by the Chairman of the Federal Board of Revenue (FBR), Muhammad Ashfaq Ahmed, the Chairman of the Oil and Gas Regulatory Authority (OGRA), Mansoor Khan, senior officers from the Petroleum Division, and a representative of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
The chairman of the APCNGA provided the Finance Minister with an update on the activities of the CNG sector in Pakistan. Khalid Latif stated that compressed natural gas (CNG) was introduced in Pakistan as an environmentally benign and alternative fuel with the primary goal of reducing the country’s reliance on expensive petroleum imports. Over the previous 15 years, an estimated Rs450 billion has been invested in the CNG market worldwide.
The difficulties that the CNG sector is currently experiencing as a result of massive fluctuations in the international prices of Liquefied Natural Gas (LNG) and the depreciation of the Pakistani currency, which has resulted in CNG being relatively expensive when compared to petrol in the domestic markets, were also discussed during his remarks. Customers in the local area are becoming less interested in compressed natural gas (CNG) as a fuel of choice due to the rising expense of the fuel.
On this occasion, the chairman of the APCNGA also provided a comparative analysis of the retail pricing of CNG and gasoline.
Shaukat Tarin indicated in his remarks that the COVID-19 pandemic had an impact on the international prices of petroleum products, including LNG, due to supply-side constraints caused by the disease.
“By limiting the petroleum levy to a bare minimum, the government has maintained pressure on the industry while providing maximum relief to consumers.”
The finance minister reaffirmed the government’s commitment to assisting CNG consumers in obtaining low fuel costs.
Shaukat Tarin established a committee comprised of the chairman of the Federal Bureau of Revenue (FBR), the chairman of the Oil and Gas Regulatory Authority (OGRA), representatives from the Petroleum Division, and the chairman of the All Pakistan CNG Association (APCNGA) to work out options for the most optimal solution.