Last night, the government announced to keep the petrol prices unchanged. Meanwhile, the CNG price has reached an all-time high at Rs. 300 per kg (around Rs. 195 per litre), after a massive hike of Rs. 70. The CNG dealers have refused to accept the price hike, saying the government wants to end the CNG sector.
The government did not allow the private sector to import Liquefied Natural Gas (LNG) independently and could not import LNG itself. The delayed import led to shutdowns of CNG stations and billions of investment loss in the CNG sector.
No More Cheap Fuel
Chairman CNG Dealers Association, Abdul Sami Khan, says CNG used to be cheap fuel for the public, but the massive hike will wipe out its demand. Who would buy CNG for Rs. 195 per litre when petrol costs Rs. 150?
The association complained that the government hiked up the prices without any consultation and demanded that the government should provide Re-Gasified Liquefied Natural Gas (RLNG) to the CNG section at subsidised rates.
“We need immediate attention of the government,” summarised the CNG Dealers Association.
The CNG Sector Bleeds
Both the old and new governments have been unfair to the CNG sector. They offered subsidies of Rs. 80 to 90 on per litre petrol and increased taxes on CNG. The government didn’t give the CNG dealers a green signal to import LNG from the private sector for three years, nor did they ensure a continuous supply. As a result, there has been an on and off gas crisis in the country.
The CNG business has suffered a lot due to the wrong policies of the government. With things getting worse and worse, the CNG sector is on the verge of completely shutting down. How will the CNG sector survive? With the sky-high prices, what will happen to the rickshaws and commercial vehicles running on CNG?
