Some weeks ago, the government was promoting the use of LPG as a comparatively low-priced fuel. The rates of LPG were being reduced and the government was wanted to attract more and more people towards using LPG through these reductions.
It reminds me of the campaign for promotion of CNG. At the time it was introduced as an alternative to petrol, it was told that this environment-friendly fuel is cheaper. Many people invested in the CNG sector and a large section of the public switched over to using this fuel. At that time, all CNG-related business boomed and people reaped great profits. Import of CNG kits, parts and cylinder got attention of the business community.
But now with the increase in the price of the CNG and its ever-increasing scarcity, all stakeholders are upset. They say the government wants to destroy their business. The CNG dealers and station owners association has issued warning to stage protest demonstrations.
I wonder if they can reduce LPG rates, why can the CNG price not be brought down to the agreed price formula, i.e. 50 per cent of petrol? If the government is interested in slashing LPG rates, why is it levying tax on CNG every now and then?
I think the Musharraf government was extremely myopic when it promoted CNG as a fuel. It was amply clear back then that Pakistan’s gas reserves are dwindling and cannot take this huge new demand. Now that we are staring an extreme gas shortage in the face, we can neither increase CNG production nor bring down its rates.
The scarcity of fuel is going to be a huge issue in the coming years in Pakistan and it will impact all aspects of life (household consumers, industrial activity, the energy crisis etc). If the state’s policy making bodies don’t shed their adhocism and do not devise a long-term plan to deal with these crises, we could be in serious trouble.