Use of CNG in vehicles with engines larger than 1000cc is banned

CNG Banned in Pakistan

Late last year we got to know that the government is working on its plan to phase out CNG from vehicles with engines larger than 1000cc, a final date for implementing the plan wasn’t provided nor any hint of it. Yesterday, the caretaker PM, Hazar Khan Khoso signed the Ministry of Petroleum’s plan to ban use of CNG from cars with engines larger than 1000cc which will come into effect from 25th of May, 2013.

And to impose the ban, any CNG station which breaches the directives of the prime minister for the first time will be charged of Rs50,000 and if it violates the orders for the second time, it would face a penalty of Rs100,000 and in case it continues to defy the ban for the third time, then it would be exposed to Rs600,000 penalty. Even then it is found in violating the ban, then the said CNG station would be closed down for at least one year.

The decision does not include to ban public sector and public transport vehicle as they are exempted from the ban.

Moreover, OGRA has so far refused to implement the orders as it says that in the past, it acted on the orders which like this one, was issued without the consent of the ECC and the federal cabinet and therefore, Supreme Court took the notices and the regulator is still facing cases in the courts.

OGRA is now consulting with its legal division to ascertain whether the ban has legal backing or not.

Meanwhile, Ghiyas Paracha, Chairman of All Pakistan CNG Association has protested against the ban saying that it violates the constitution and equal rights to the people.

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