ISLAMABAD: Compressed Natural Gas (CNG) Association has yet to announce a reduction in the prices of CNG following significant decline in the prices of re-gasified liquefied natural gas (RLNG) for May.

On May 7, the Oil and Gas Regulatory Authority (Ogra) slashed prices by up to $1.84 per mmbtu for May.

Owing to a reduction in global crude oil prices, the LNG prices have come down to $7.7 per mmbtu.

The All Pakistan CNG Association has announced a cut of Rs12.5 in the prices of CNG from May 1 following reduction in oil prices but yet to pass impact of the RLNG prices further reduced in May.

The prices of the CNG across Punjab and Islamabad is now Rs72 a kg.

Due to the global tumble in crude oil prices, the rates of petrol and high-speed diesel have been brought down by Rs15 and Rs27.15 respectively, from May 1.

The operators of the CNG demanded support from the Prime Minister’s Economic Relief Package to avoid unemployment and business closure as a fallout of the coronavirus lockdown in the country.

The All Pakistan CNG Association (APCNGA) said the sector was collapsing due to the economic slowdown, and needed an urgent bailout package.

It said the CNG sales had plunged due to lower price differential following reduction in oil prices but the lockdown had virtually closed down CNG retail outlets.

Central Chairman APCNGA Ghiyas Abdullah Paracha in a letter to Prime Minister Imran Khan said the reduction in oil prices had provided relief to masses but it had also minimised the difference in the prices of petrol and the CNG, which halted the sector at stake.

He asked the government to allocate Rs100,000 monthly grant to every filling station for three months and relief in other services.

The withholding tax should be reduced from existing four percent to two percent, industrial power tariff should be allowed to the CNG sector and the Maximum Demand Indicator charges included in the electricity bills should be capped at 10 percent.

The gas distribution and re-gasification charges should be brought down, while gas infrastructure development cess should be abolished.

In addition, gas rates for CNG filling stations

using local gas should be reduced by 35 percent, he demanded.

Waiver of five percent customs duty on LNG imports should be allowed, so that its price could be brought down for consumers, he added.