KARACHI - The CNG price is expected to reduce from 1 July 2009, as the petroleum prices will face cut down in the local market, The Nation learnt from the sources. The CNG association has demanded that if the prices of petroleum products go down, then, the CNG prices should also reduce. They have demanded the government to bring the difference between the prices of these two fuels up to 50 pc which is about 20 pc currently. The CNG industry has made huge investment in the country and it has pocketed a good share of profit during the time when the petrol prices were high up to Rs 80 per litre. Over 2.1 million consumers are using CNG for their vehicles; this is because there is price difference between petrol and CNG. Now, the variation is about 20 pc which is affecting the CNG business, this difference should be maintained 50 pc in order to provide relief to the consumer, said a source. It is note worthy that the price of CNG had hiked up to Rs48 per kg during January. The decision was taken in the context of rising gas price for the CNG industry, it was condemned by the association but the increased price of gas for the CNG stations up to 10 pc resulted into pervious hike. Now, that the government is considering reducing the petroleum product prices from 1 July, under the direction of Supreme Court of Pakistan, CNG industry also waiting for price reduction, added the source. It is notable here that the CNG industrys efforts to reduce governments burden of foreign exchange payments and huge savings of foreign reserves resulted from shift to CNG use in vehicles. The CNG industry has resulted in savings of more than $250 million per annum of foreign exchange for Pakistan. Sources from petroleum industry pointed out that government is not clarifying its move for lowering POL prices. Due to this fact, there is distress among the petroleum dealers and they have almost stopped purchasing petrol for their stock. This might lead to shortage of POL products in the country; government should take decision on cutting the prices as soon as possible. The government is earning good amount of revenue by these POL products, along with GST, the government is earning PDL on petroleum products. This is an unjust not only with the consumers but also with the industries, said the source. The profit margin for the petroleum dealers will not be affected by any change in prices of petrol. It has been fixed and considered by OGRA and we have no issues in cutting down the petrol prices, relief should be provided to the consumers, the source concluded.