The Gas Crisis in Pakistan

CNG CRISIS


The fate of over 3.5 million CNG fitted vehicles and 3,696 stations now hang in the balance following last month’s government decision to impose ban on imports of kits and cylinders and surging CNG load shedding in the country.

It all started in 1998 when the government allowed the use of CNG in vehicles in order to make the environment green but it seems that the CNG industry, kit makers and importers, auto makers, vendors and above all the CNG fitted vehicle owners are now having sleepless nights these days as they do not know whether the ban is imposed on permanent basis or it is a temporary move. In a nutshell it seems that the days of saving money while running vehicle on gas is going to be over sooner or later.

If we assume that the government has taken a permanent decision then why the government continues to grant license for opening new CNG stations while knowing the fact about gas availability situation in the country coupled with gas load shedding in industrial sectors and even low gas pressure problems in residential areas.

An estimated investment of Rs 400 billion in setting up of CNG stations in the country coupled with installing of kits and cylinders are now at stake in case the ban is not removed.

Some market people say that the ban on CNG kits and cylinders does not look a temporary move as the government has decided to encourage LPG in the auto sector though it has been proving a costly fuel. However, it is not clear whether the LPG is Euro II compliant fuel or environmental friendly in case it is used in the vehicles. LPG is mainly used for burning purpose in northern areas but it has gained popularity in auto sector also in the last few years.

Another main aim of the government is to promote liquefied natural gas (LNG) which will be imported to meet the demand and supply gap.

Consumers especially in Punjab are already in distress over long hours of CNG load shedding and they said that the government’s...