Proposed CNG kit ban will not do any good for gas sector. On the contrary, it will increase problems of the middle class and open gates of smuggling and corruption. This would subsequently be damaging for government. Ban will also increase smuggling of the product and at the same time, it will open gates for corruption. Also, environment would be in danger because of the ban. CNG emits far less pollution than petrol therefore chances of increase in air pollution would also be high.
Around 50,000 kits and cylinders have been imported during this year. Last year around 200,000 kits were imported. More than 150,000 kits and cylinders are in the market and in case of ban their prices would go up sharply. Currently, CNG kit and cylinder in a corroborator vehicle is installed for Rs25,000-30,000 and in an effective fuel injunction (EFI) vehicle for Rs50,000-60,000. Market stakeholders said that as soon the ban would be imposed prices of these kits would double and it would be problematic for consumers. They said there is no point in stopping CNG conversion of vehicles. In fact, these kits would enter through smugglers and ultimately their prices would go up. In the past when there were heavy duties on air conditioners their prices inflated and ultimately people used to buy smuggled air conditioners, which in turn damages exchequer and economy. Similarly, in case of ban rates of CNG would increase due to smuggling. Currently, import of CNG kits is duty free. Kits and cylinders are imported from Italy, Argentina, China and India.
During last 15 years more than 2.5 million vehicles were converted to CNG. Process of conversion started in 1994, when government was encouraging green fuel. Consumers invested more than Rs70 billion only to convert their vehicles to CNG. And now once again government is reversing the policy, objecting that CNG sector consumes a lot of gas. According to Economic Survey of Pakistan, out of total available gas by SNGPL in the country CNG sector consumes 10 per cent, domestic consumers take 40 per cent, power sector takes 19 per cent, fertilisers seven per cent, general industry (e.g textile) 20 per cent and commercial users take four per cent. Under these statistics, the ban on CNG kits would not do anything good for the country rather it will make current political government more unpopular. Hence, it would be hard for Pakistan People’s Party (PPP) to secure votes in next general elections according to the stakeholders of the industry, who shared their views with Profit. They said bureaucracy is misguiding political government through such proposals, which are severely damaging for PPP government.
All Pakistan CNG Association Senior Vice Chairman Central Executive Committee and Punjab Former Chairman Raja Anwer said that in case of ban, prices of kits and cylinder would go up and middleclass would suffer badly. He said maximum users of CNG vehicles are found in the middle class. “In case of ban, these people would be deprived of cheap transport,” he said. He added that under absence of better public transport system, this ban would play havoc with common man, who is already facing inflation and price-hike. “Liquor is banned in the country but people use it; but they get it at higher prices,” he said. Banning anything is not the solution of the problem, he concluded.
CNG kit ban to multiply consumer woes
