Punjab Gas supply suspended for indefinite period

LAHORE: Sui Northern Gas Company (SNGC) has suspended gas supply to CNG stations across Punjab for indefinite period, reported Aaj news.

The unannounced suspension of gas supply to the Compressed Natural Gas (CNG) stations is creating serious problems for transporters and commuters alike, as gas supply to CNG stations has been stopped for indefinite period.

Long queues of vehicles were seen at both the petrol pumps and gas stations in twin cities.

CNG stations were to reopen on Sunday in Rawalpindi/ Islamabad, but the closure was extended owing to low gas pressure ensuring uninterrupted gas supply to the other sectors.

Following the closure of CNG stations, petrol pump owners were facing petrol shortage, saying that the consumers have increased the consumption of petrol after gas shortage. Petrol pump owners expressing serious concern said that petrol shortage will intensify in the country if the government did not resolve CNG issue.

As per official documents, CNG sector is consuming about 327 Million Cubic Feet (mmcfd) per day out of total national gas production of 4,238 mmcfd. As per official figures there are 3,400 CNG stations in the country and around 3.6 million vehicles are running on the said fuel.

The government is collecting Rs 36.34 per kg on its sale, which includes over Rs 12 per kg on account of Gas Infrastructure Development Surcharge (GIDS), Rs 13.25 per kg on account of Gas Infrastructure Development Cess (GIDC) and Rs 11.08 on account of General Sales Tax.

CNG as a fuel is being used by over 90 percent of the Public Service Vehicles (PSV) which includes taxis, vans, mini buses, rickshaws and buses. The sector is paying around Rs 70 billion taxes to the national kitty annually.