CNG price reaches highest level of Rs300 per kg

After the hike of Rs70, the Combined Natural Gas (CNG) price has reached the highest level of Rs300 per kilogram, ARY News reported on Saturday.

The dealers have rejected the hike in CNG price as the fuel rate reached the highest level  up to Rs300 per kilogram from Rs230.

CNG Dealers Association Chairman Abdul Sami Khan said in a statement that the federal government wanted to end the CNG sector as the Re-Gasified Liquefied Natural Gas (RLNG) price was also jacked up without any consultation.

Khan said that investments worth billions are being wasted in the CNG sector. He added that CNG was considered a cheap fuel but the massive hike will wipe out its demand.

READ: FUEL SUBSIDY CAUSING SEVERE STRESS ON ECOMONY: MIFTAH ISMAIL

He demanded the federal government provide RLNG to the CNG sector at subsidised rates, otherwise, it should completely end the CNG sector.

Fuel prices’ hike

The federal government is likely to take a key decision on a hike in fuel prices today as subsidy on fuel prices will likely be reverted phase-wise ahead of talks with International Monetary Fund (IMF) from May 18.

The fuel prices will be hiked phase-wise after Ogra conveyed to the government an increase in per litre subsidy on petroleum products.

“The government is giving a subsidy of Rs29.60 on petrol prices and from May 16, it will be further hiked to Rs45.14 per litre,” they said, adding that per litre subsidy on diesel from May 16 would be Rs85.85 while on kerosene oil it would be Rs50.44.

READ: RLNG RATES: GOVT NOTIFIES 40 PER CENT HIKE FOR MAY

After the elimination of complete subsidy, the prices of petrol, diesel, kerosene oil and light diesel per litre would be Rs195, Rs230, Rs176 and Rs186.31 respectively.

“The devaluation of rupee could also result in a further hike in fuel prices,” they said and added that however, a final decision in this regard would be taken after approval from Prime Minister Shehbaz Sharif.

Rs102 billion loss

Previously, Finance Minister Miftah Ismail had said that the government treasury is bearing 102 billion rupees loss on account of petroleum products each month.

READ: PM SHEHBAZ SHARIF DIRECTS MIFTAH ISMAIL TO PROVIDE RELIEF TO MASSES

“The government is bearing per litre 30 rupees loss on petroleum,” Pakistan’s finance minister said. “However, the decision not yet taken to enhance the prices of petroleum products,” he said.

Ismail, in a press talk, said the government had previously never sold petrol at a loss because the economy could not afford it, adding that if fuel prices are not hiked in May, the treasury will lose Rs102 billion.