A recent report suggests that the price of compressed natural gas (CNG) may increase up to Rs9/kg based on the latest liquefied natural gas (LNG) tax proposal.
The news came Thursday from the Pakistan CNG Association (APCNGA), which also highlighted that taxes on LNG will rise from the previous rate of Rs. 6 per kg to Rs. 9 per kg. The report adds that the government has proposed an increase in the general sales tax (GST) rate for liquefied natural gas (RLNG).
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The rate hike would close several CNG stations across the country, causing several thousand people across the country to lose their livelihoods.
Ghiyas Paracha, central director of APCNGA, expressed concern over recent events, saying that “levying gas development surcharges and increasing other taxes will hurt the gas sector and will hurt investments worth hundreds of thousands of millions in the CNG sector and one negative news.”
Paracha added that the government is providing affordable energy to various sectors while also favoring the export industry to offset the import bill.
He stressed that the govt. should also encourage the use of CNG to fill the trade gap.
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Paracha noted that almost all sectors in the new budget have received some relief, with the exception of the CNG sector, which appears to be an unfair move.
“Closing the CNG sector will increase pollution, increase public transport prices, increase the oil import bill and increase the budget deficit,” warned Paracha.
