Due to the increase in GST rate on LNG, the price of CNG has gone up by Rs 30 per kg. The CNG Association decided to take up the matter with the federal government by calling an emergency meeting.
According to Express-News, after the imposition of GST (General Sales Tax) on LNG, the Executive Committee of the All Pakistan CNG Association convened an emergency meeting to discuss the effects of the increase in expensive LNG cargo and sales tax. Was reviewed.
It was informed in the meeting chaired by Ghias-ud-Din Paracha that due to increasing in sales tax rate and increase in import price of LNG, in the provinces where CNG is sold per liter, Rs. 18 per liter and Where CNG is sold in kilograms, there will be an increase of Rs 30 per kg.
Ghias Paracha said that in this situation, the problems of consumers, as well as CNG station owners, will increase. The meeting also considered whether to continue or close the business, in case of opening CNG at this price. It is not possible to impose all the burden on the consumers. The government should provide subsidies on CNG like other sectors.
He said that the meeting had decided to take up the matter with the federal government. If the government did not provide subsidy for LNG for CNG, the CNG business would have to be shut down, resulting in a nationwide crackdown. The 3,000 established stations will be closed and the owners of 2 million CNG-powered vehicles will face problems and the employment of 400,000 people associated with CNG stations will also be jeopardized.
It may be mentioned that the federal government has increased the sales tax rate on LNG from 5% to 17% from July 1. Due to a shortage of natural gas, 90% of CNG stations have shifted to LNG.
