Requiem for a dream

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The decision of shutting down one complete industry in Pakistan that involves huge investments, employments and is serving the nation with cheaper and environment friendly way of transport is being done without finalizing the alternative means, sources in auto sector said today. Recently there is a lot of debate going on alternate fuel systems and its availability to general public in a package that is affordable to them. Recent intentions of government are clear to promote LPG and discourage the consumption of CNG. The decision is not viable as it seems it has been taken in haste and without considering the pros and cons, the sources revealed. In order to develop any industry, proper planning, analysis and infrastructure is required that is not done in this case. Lots of discussions are being done but so far, without any conclusion and clarity. The decision does not answer queries like when, how and at what comparative rates LPG is available. There is no infrastructure available and no distribution network is planned so there is a huge question mark on portability of LPG to end consumers. Stability in pricing of LPG is yet another concern that is so far responded by vague statements. There should be at least 30-40% price difference between LPG and Petrol in order to make LPG a feasible option in comparison to petrol and therefore it demands sustainable pricing for LPG which is difficult because of less availability and high imports of LPG in Pakistan. In case of a low difference of about 10-15%, LPG will ultimately be expensive for end consumers because of its low mileage per unit and less efficiency. A car that runs 14 km in 1 liter of petrol will cover 11 km in 1 liter of LPG whereas it covers 21 km in 1 kg of CNG as per a study from sector experts said. Considering from the end consumer’s point of view, it will be an additional burden to the already affected citizens of the country as LPG is an entirely different kit so all the vehicles that are currently converted on CNG will have to be reconverted on LPG so the end consumer will have to bear the cost of new kit and installation. All these factors demand a steady smooth transition with proper planning, analysis, infra structure addressing the concerns of all stake holders and with the intent that the decision has to support the general public and should put them at ease. For sure such decisions cannot be taken over night if so, will always lead to devastating situations.