The prices of gas at CNG stations being run on re-gasified LNG (RLNG) throughout Punjab zone are being reduced by Rs 6 to Rs7 per litre from today (Tuesday).

The new CNG prices will be almost 30 lower cheaper than petrol, central leader of All Pakistan CNG Assocation Ghiyas Paracha told the scribe.

“If the government reduced the prices of petrol to Rs 69 per litre from the existing Rs71.7 per litre then CNG would be about 30 percent cheaper than gasoline,” he said. The existing price of CNG in Punjab is around Rs 55.40 and Rs 7 reduction will bring it down to around 48.

Out of the total 3,495 CNG stations in Pakistan, 2,400 were located in Punjab zone but after intensification of gas crisis in 2014 gas supply to CNG stations of Punjab was suspended but the supply was partially restored in June 2015 under the new rules. The restoration of gas supply to CNG stations in Punjab was made possible through the imported re-gasified LNG (RLNG). According to the new policy, RLNG will be provided to those CNG stations that furnish additional deposits of Rs 1.2 million. Under the current RLNG price formula, the CNG stations are selling the gas to the end consumers at Rs55.40 per liter.

Paracha said that so far 950 CNG stations in Punjab zone have been converted into RLNG and hopefully the number will increase soon.

Earlier, a press release issued here stated that keeping in view the low import price of LNG the government has reduced CNG prices in Punjab which would be applicable from March 1.

Paracha said that decision of reduction in CNG prices would save the Rs 350 billion CNG sector from collapse and will help in creating more jobs and attract new investment. The reduction in CNG prices is good for both economy and public health as it will reduce the oil import bill and pollution, he added.

“Pakistan’s CNG industry will soon reclaim lost title of world’s largest CNG industry due to the support and initiatives of the government backed by the vision of energy managers,” he said.

He said that new prices would make CNG attractive for motorists and transporters and reduce public transport fares, providing relief to the commuters. Ghiyas Paracha hoped that the initiatives of the government will settle gas shortages in the country soon.