40pc Cut in CNG Prices Expected

The rates of local gas can be reduced by 40 percent as they are linked to the global crude oil market that was facing an unprecedented, the stakeholders said on Monday.

“Any hike in the international oil market is passed on to consumers without any delay, but the benefits of a fall never reach them,” said Ghiyas Abdullah Paracha, central chairman All Pakistan CNG Association (APCNGA) in a statement.

“Following a steep fall in the oil prices, the gas companies have not reduced gas prices, earning billions of rupees per day, while denying consumers what they deserve, which should be noticed, as the masses, CNG sector, and consumers at large, badly hit by an extended lockdown deserve relief.” Paracha said consumers were made to pay the price of gas, which was only justified when crude was at $61 but lately it retreated to $20, and now settled below $30 per barrel.

Similarly, he said the price of High Sulphur Oil slumped from $350 to $151 per ton in the international market and there was no chance of a rebound in the near future, but gas prices were kept unchanged, which was unjustified.

Leader of the CNG sector said that the government should take note of the situation, issue guidelines to Oil and Gas Regulatory Authority (OGRA) under Rule 21 and the regulator should take steps to reduce the price after conducting public hearings on an urgent basis.

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