Pakistan: Parity in CNG, petrol prices likely to affect bus project

As per details of the Shaheed Benazir Bhutto CNG Bus Project, 4,000 dedicated buses are to be brought to the city over a five-year period, with the federal government pledging a Rs2.5 billion subsidy to importing these buses. Sources maintained that in order to sustain the differential in prices, the government may subsidise the CNG buses operators to ensure that they are not affected.

Likewise, sources said, the federal government had also decided that Sui Southern Gas Company would provide investment up to Rs5 million on a CNG station for the laying of its initial infrastructure, include the installation of a pipeline of greater diameter.

Issues of environmental significance are also at stake if the government’s proposal to bring CNG prices at par with that of petrol. Former president of the Karachi Chamber of Commerce and Industries (KCCI), Anjum Nisar, said that environmental pollution would be greatly increased in major cities if the government decides to increase the CNG price and bring it at par with petrol. “Sometime back, Delhi was recognised as the most polluted city of the world. Some five or six years ago, their decision-makers decided to convert all vehicles to CNG, instead of continuing to run vehicles on petrol or diesel. Now, the natural environment of Delhi is much cleaner and better,” he said.

Nisar added that about two billion dollars were invested in the CNG sector during the last seven years, when CNG was being given priority as alternative fuel against the usage of diesel and petrol. He said that a large number of citizens started to opt for CNG as fuel for their vehicles, and 3,500 CNG filling stations were established across the country to cater to this demand.

The former KCCI president said that countless citizens had gotten their private vehicles switched to CNG, for which they paid around Rs30,000 for the CNG kit alone, as the price of CNG was not only affordable but also environment-friendly. He said it would be unjust with these CNG consumers if the government increases the price of CNG, adding that all environmentalists agree that CNG is a better form of fuel than diesel or petrol.

Nisar said that Pakistan currently ranks as number one in terms of the number of CNG stations in a particular country, adding that the livelihoods of 500,000 individuals is associated with CNG-related businesses. He said such a decision would not be regarded a good decision, as CNG is Pakistan’s own product, contrary to petroleum products that are imported.

When pointed out that Finance Minister Shaukat Tarin was pushing this policy to save gas in the transportation sector, and divert it to industries, Nisar said that CNG consumes only five to six per cent of the total production of natural gas.