CNG Rate In Sindh Expected To Drop By Rs25

CNG Stations

According to officials at the Petroleum Ministry, the price of Compressed Natural Gas is expected to drop Rs25 from 1st May 2016 in Sindh. The Petroleum Ministry and the CNG Dealers Association Sindh have come to an agreement to start using imported Liquefied Natural Gas instead of local natural gas (CNG).

Shahid Khaqan Abbassi, the Petroleum Minister, has agreed for Sindh to follow Punjab’s design and same extent of concessions will be granted to the CNG sector in Sindh province as well. These grants include reduction of GST to five percent and no Gas Infrastructure Development Cess (GIDC). Currently, the GST on the natural gas-based CNG sector is 21pc whereas GIDC is Rs200 per MMBTU.

Also Read: PKR 400 Billion Worth Of Fuel Gets Wasted Annually In Karachi Due To Traffic Jams

The expected rate of the CNG is going to be around Rs 41.90 per kg whereas currently it is s 67.50 per kg in Sindh. And it is all due to the agreed upon concessions. However, the CNG will be sold in liters, instead of kilograms currently.

The CNG owners are looking forward to the change. The President of CNG Station Owners Association of Pakistan, Malik Khuda Baksh, said:

“We have studied the results of selling CNG based on the LNG from different perspective, and the results are encouraging,”

He further added,

“With reduced taxes both the CNG operators and the consumers will benefit as the rates are low.”

Although the majority of private car owners, and even public transportation business, have shifted to petrol after the nationwide shortfall of CNG and cheap petrol, there still are few users in both sectors. According to Mr. Baksh, it will be easy for them to switch to LNG from CNG.

In Sindh alone, CNG stations consume around 100 million cubic feet of natural gas per day.

  • Can you please confirm if its 41.90 per KG or per Liter? Cause other news websites are quoting it in Liter.
    It will be a disaster if they start filling CNG with per Liter rate cause cng station owners will start looting us by not compressing natural gas much.

  • Guest

    If the gas is not compressed much, it cannot flow into the CNG tank of your car, which means they get to sell less. So they will have less incentive to “not compress it much” as people usually avoid going to stations with low pressure.

  • Usman Haider Sheikh

    somebody explain the f**ing kg to liter conversion formula cng association is using?
    according to my understanding, a gas can occupy as much volume as it is provided with inverse relation to pressure.

    i’ve a 55 liter cylinder, 8-8.5 kg of compressed gas makes it full with 220-230 psi of pressure.
    means that no matter what:

    i. 55 liter of compressed gas would be required to fill the cylinder at pressure of 220 psi

    ii. if they charge the rate for uncompressed gas than 100 liter or more uncompressed gas would be required of which 55 liter after compression would fill the cylinder.

    iii. or 8-8.5 kg of gas would make the cylinder full.

    now what is happening at pumps is that they fill my car with 11-12 liters of gas according to their gauges which doesn’t fit with any of the situations i’ve described above.

    I got my cylinder filled for 500-550 back than and 480-490 now so there isn’t as much reduction in price as govt. promises for the consumer, but their might be a huge advantage for cng pump owners. from my understanding, kg to liter drama is to let them de-calibrate their gauges to show 1.5 times the kg amount they have filled and call it in liters. which they charge in the name of “liter zyada hoty han kg sa”, they might be right, but phir 55 liter kyun ne dalti?”

    anyone here to enlighten me with the formula or the conditions they use to calculate conversions?

  • Bhai yeh luutnay ke tareeqa hai jis par CNG Association aur Govt. ka ittefaq hogaya hai

  • Guest

    When LPG is filled, it is at atmospheric pressure and filled in liquid state (name LPG), hence measured in volume (litres). But for a gas, volume is always accompanied by pressure, as a single parameter would not describe the situation completely.
    55L is the “water volume” of the cylinder.

  • Dr. Aamir Liaquat Hussain

    News about sindh and picture used is of kaleem cng near koral islamabad. no cng’s in sindh?

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