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300 CNG stations to be set up in six months

By Mushfiq Ahmad

KARACHI: As many as 300 more CNG pumping stations are expected to be established all over the country during the next six months, as the use of compressed natural gas in motor vehicles has gained momentum due to rising petroleum prices.

“According to an estimate currently there are around 700 such stations throughout the country, 200 of them set up during last twelve months,” Abdul Sami Khan, chairman Pakistan Petroleum Dealers Association, told Daily Times.

People are fast getting their cars converted from gasoline to CNG since there is a difference of Rs 15 in the prices of petrol and CNG. The gas is currently available at Rs 27.50 per kilogram while the petrol’s price was hiked above Rs 42 per litre in the last revision of Oil Companies Advisory Committee. “An estimated 600,000 vehicles have been converted from gasoline to CNG to-date, as compared to 200,000 converted by the end of 2001,” said Malik Khuda Bux, chairman CNG Stations Owners Association.

People are now seen making a queue at pumping stations to fill CNG, he said and added that at a pumping station doing average business around 350 people came per day to fill CNG. “There are some stations which receive even 500 customers every day, but there are some which get only 200 customers a day-it depends on the location of the station,” he added.

In the beginning it was seen that the people, using cars above 1,300cc, were more interested to fit a CNG kit to slash their daily petrol bills, but rising inflation has forced small car owners of 800cc to 1,000cc too, to switch over to CNG. The cost of installing a CNG kit in a car is now around Rs 22,000 as compared to Rs 26,000 earlier.

Besides, the government is also keen to promote use of CNG and is encouraging public transport to turn their vehicles to CNG from diesel. The government’s efforts are aimed at reducing the oil import bill as well as to improve the environment. Seeing the demand of CNG kits in cars, some car assemblers have also started rolling out vehicles fitted with CNG kits, said Mr. Khan. These assemblers receive extra Rs 25,000 for vehicles fitted with CNG kits.

The use of CNG is likely to rise further as the petrol prices are likely to continue their upward movement, as the international oil prices have once again started rising.

PSO, Shell and Caltex, currently engaged in distribution of gasoline and diesel, also offer CNG at their pumping stations.

The government of Pakistan seems determined to enhance use of gas to reduce its import bill and save precious foreign exchange. Pakistan spent $1.87 billion on importing petroleum crude and its products in the first half of this fiscal year, up $514 million or 38 per cent from $1.356 billion import during the same period of last fiscal year.

Import of petroleum crude stood at 4.56 million tons in the first half of this fiscal year, up more than 24 per cent from 3.67 million tons imported in the corresponding period of last fiscal year. Import of petroleum products was 2.89 million tons, up 14 per cent from 2.53 million tons during this period, according to data released by the Federal Bureau of Statistics.

Pakistan is now among the countries topping CNG-use with Argentina and Italy. Due to the fact that Pakistan has ample resources of gas, the country is well positioned to take advantage of local supply of gas, saving foreign exchange.

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