CNG Price in Pakistan
CNG consumption saw a boon in 2007-2008 when Government allowed CNG usage for vehicles. Since then, CNG price in Pakistan Pakistan has been soaring.CNG has become one of most popular vehicle fuel all over the world, for many decades. This is probably one of the reason for soaring of CNG Price in Pakistan.
|CNG Region-I||Rs. 75.82 /Kg|
|CNG Region-II||Rs. 81.69 /Kg|
- *CNG Region 1 includes (KPK, Baluchistan, Potohar region; Islamabad, Rawalpindi and Gujar Khan)
- **CNG Region II include (Sindh and Punjab excluding Potohar region)
World Bank states that 5 million vehicles worldwide are powered by CNG. South America has the most number of vehicles running on CNG, to be followed by Asia, Europe and North America. Interestingly, the number of petrol engined vehicles using CNG is bigger than diesel engined vehicles. Perhaps this is because of the fact we’ve perfected the art of CNG conversion to petrol & are lagging behind in CNG conversion for Diesel.
An International Perspective
International Association for Natural Gas Vehicles (IANGV) reports that CNG is being used in more than seventy countries of the world. Pakistan has highest consumption of CNG & is ranked at no.3 after Argentina and Brazil. In Asia, Pakistan is at NO.1 in CNG consumption. Consequently, this is a reason why CNG Price in Pakistan is higher than other neighboring Asian countries.
CNG Price in Pakistan | A local Perspective
In perspective of limited supply of indigenous fuels, it’s high time for replacing indigenous gases with a substitute fuel, particularly flammable gas that is locally accessible at low cost while in the meantime a far reaching framework for transmission f gas is as of now set up. Hydrocarbon Development Institute of Pakistan (HDIP) have prompted an effective program of commercialization of CNG as a vehicle fuel in Pakistan. HDIP is currently going about as a Technical Support Institution to help Oil and Gas Regulatory Authority (OGRA) in effective transmission of CNG all over Pakistan.
Why are CNG Price in Pakistan so high ?
In December a year ago, the central government declared deregulation of CNG costs by revoking the authority of Oil and Gas Regulatory Authority (OGRA). Government allowed CNG merchants to settle CNG Price in Pakistan by themselves. This was insane decision. Ultimately resulted in hike of CNG Price in Pakistan, despite decrease in Petrol price in Pakistan at the same time.
CNG Price in Pakistan | Exhibit A of Unbridled Capitalism
After deregulation of the CNG sector by the ministry of petroleum and natural resources, CNG stations in KPK took it upon themselves to use the powers given to them by the Government. As a result, CNG gas prices in KPK saw a hike of Rs4.08 per Kilogram. This ultimately resulted in a similar hike in CNG Price in Pakistan all over. This essentially meant that as far as the retail end of the supply chain is concerned, the CNG Price in Pakistan is now unbridled as the CNG has now entered the free market domain.