ISLAMABAD: Instant supply of 50 Million Cubic Feet per Day (MMCFD) of local unutilized natural gas to the Compressed Natural Gas (CNG) Stations for its re-sale to motor vehicles can benefit the country by approximately $778.93 million annually.
At a time when the country direly needs foreign exchange to maintain its reserves, Ghiyas Abdullah Paracha, a senior leader of CNG association on behalf of the CNG industry, disclosed that immediate supply of only 50 MMCFD of indigenous unused natural gas to CNG Stations for its re-sale to motor vehicles can save country’s precious foreign exchange of approximately $ 587.26 Million USD per annum and the government can generate approximately $ 191.7 million/annum.
“While having a 25 years long experience in the gas sector I can ensure $ 200 million worth of benefit to the country within one month with available resources if an opportunity is given to me,” said Ghiyas Abdullah Paracha.
He added that he is ready to prove his claim on every forum and wanted from the government to give a level playing field to the CNG industry to run its business for saving the precious foreign exchange and also for steering the country out of the ongoing energy crisis.
Senior leader of All Pakistan CNG Association also said that the CNG sector has the full capacity to immediately provide cheap, alternate and eco-friendly fuel to the motor vehicles as CNG Stations are established across the country.
“The CNG industry is ready to offer a cheaper eco-friendly fuel of CNG to the motor vehicles in order to provide immediate relief to the public and the national exchequer as well, said senior leader of CNG association, adding that CNG stations are established across the country, and vehicles also already got fitted CNG kits while oil prices are touching the record high level so the government should focus on CNG sector to provide cheap fuel for the motor vehicles plying on roads.
We have submitted our working to the government regarding billion rupees worth saving in foreign exchange reserves and hefty revenue generation for the national exchequer with the use of stranded local natural gas in motor vehicles as a fuel instead of petrol, said Ghiyas Abdullah Paracha.
Sharing details of country’s foreign exchange saving and revenue generation for the national exchequer, Ghiyas Abdullah Paracha further said that with instant supply of only 50MMCFD of stranded indigenous natural gas to CNG Stations for use in motor vehicles can save approximately $ 434.49 million/annum, while it can save two (2) percent Unaccounted for Gas (UfG) which is equivalent to five (05) MMCFD worth $52.84 million annually. Similarly, supply/sale of additional 10 MMCFD stranded natural gas to CNG Stations for new conversions & its use in motor vehicles can save $ 86.89 million/annum. Furthermore, installation of sequential injection kits in the motor vehicles will save 17.54 million liters of petrol and as a result foreign exchange of $ 13.03 million/annum can be saved.
About revenue generation for the government with allocation of 50MMCFD of local unused natural gas, Ghiyas Abdullah Paracha said that tax collection at the time of distribution/sale to third party (CNG Industry) can generate $ 48.9 million/annum while tax collection at retail price of CNG (supplied by CNG stations to Motor vehicles) can generate $ 102.366 million/annum and tax collection on five (5)MMCFD of natural gas which can be saved through two (2) percent cut in UfG by supplying the natural gas to CNG Stations for re-sale to motor vehicles can generate $ 10.24 million/annum. Similarly, $9.7 million per annum tax collection at the stage of distribution/sale to third party (CNG Stations) and $ 20.47 million annually can be generated through allocation of 10MMCFD of local unutilized natural gas which will be saved through sequential injection kits on motor vehicles, said Paracha.
“The government must immediately take policy decision regarding supply of only 50MMCFD of unused local natural gas to the CNG Stations in order to save the precious foreign exchange reserves and to generate revenue through tax, duty, royalty, windfall levy of gas (WLG) etc while also to save the skin of already burdened public from the mounting oil prices in global oil market, which is causing colossal additional burden on public after passing every fifteen days,” Ghiyas Abdullah Paracha.
It is pertinent to mention that total 2300 CNG Stations are established in the country and out of which 1100 CNG Stations are located in Punjab, 600 CNG Stations are situated in Sindh, 575 CNG Stations CNG Stations are operating in Khyber Pakhtunkhwa and 25 CNG Stations are have been established in Balochistan province. At present, approximately 50pc of the total CNG Stations of Punjab Province have suspended their operation due to non-availability of gas from December 2021. Similarly, Rs150 billion worth local investment so far made in developing the CNG kits has been facing serious danger due to closure of CNG Stations and non-availability of gas as a fuel for motor vehicles. Furthermore, direct and indirect employment in the CNG sector is 5.1 lakh and total gas consumption required by the entire CNG sector is 400 Million Cubic Feet per Day.
