Tax on CNG

New tax on CNG planned | DAWN.COM

ISLAMABAD: The government is considering to impose a new tax on compressed natural gas to reduce the price difference between CNG and petrol in order to phase out the use of the gas in private transport.

“The government has planned to phase out CNG stations gradually as they are causing heavy loss to the national economy by wasting this valuable commodity (natural gas), instead of its use for industrialisation and investment and domestic use,” Prime Minister’s Adviser on Petroleum Dr Asim Hussain told the National Assembly’s Standing Committee on Petroleum on Wednesday…

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I agree with the government here. The policy of allowing CNG stations to mushroom throughout the country was a disaster in Mush government. Every street seems to have atleast one. It is not sustainable to have all vehicles plying on CNG. As predicted a few years ago, by 2020, Pakistan would become a graveyard of discarded CNG cylinders and kits.

The way forward is development of comfortable and efficient public transport system in all major cities. I advocate heavy import tax on cars and parts used for assembling them in Pakistan. We need to use that money to import busses and have franchises run them. We cannot really continue putting more cars in already congested streets. Pollution is already choking our children.

Re: Tax on CNG

^ I'd like to disagree. The Iran Pakistan gas pipeline has the potential to bridge the current gap between demand and supply. Yeah the Iranian gas will be more expensive than SUI gas, but it'll still be a lot cheaper than Gasoline. And methane is a cleaner fuel.

We already have a contract with the Iranians and we'll be paying a hefty penalty to them if we don't start taking delivery before 2014. So the pipeline has to be made or we'd be paying money without getting any gas.

Re: Tax on CNG

^ That gas should be used in industry and power generation, not in Toyota Corollas.

Re: Tax on CNG

Kaka, if we're not going to import gas, then yeah it probably shouldn't be available to Toyota Corollas. I opened a thread about how buses deserve it more than private cars.

However, there isn't a lot of gas left. The only reason this pipeline isn't being made is because the US has a problem with it. Our leaders should use their brains and think of a way to get this done or there won't be any gas left to fight over.

Re: Tax on CNG

^ Imported gas needs to go to industry first. Instead of running power generation plants on oil, we need to run them on gas. Our industry has suffered a lot because of gas and power unavailability.

Left over supply should go to domestic consumers and then to vehicles.

Re: Tax on CNG

Haha Kaka. Pehle import to hone do. Once we build this pipeline we'll have enough gas for everyone. Heck this was supposed to be an Iran-Pakistan-India pipeline, but India pulled out because US offered them a nuclear reactor deal. Iran has enough gas for everyone in the region. If only they had a smart foreign policy too.

Re: Tax on CNG

Exactly~

Till then, we must prioritize.

Re: Tax on CNG

In principle I agree with kaka. The problem however is, that the money that will be raised through this will NOT be spent on improving the transportation infrastructre. It will end up in various Swiss bank accounts again.

Re: Tax on CNG

Agreed.

Re: Tax on CNG

dair aayad darust aayad...CNG usage should be curtailed...more needs to be spared for industries and power generation, which is hurting the nation more as compared to CNG. With no proper safety mechanisms in place, its cylinders are a ticking time bomb in any case.

Re: Tax on CNG

CNG cylinders are safe.

However when people fill ups CNG in LPG or oxygen tanks accidents happen.

Re: Tax on CNG

^ CNG cylinders need to be maintained, and have it checked after 2-3 years but I have never seen anyone have them checked.

Re: Tax on CNG

It's the regulation that's flawed then. I'm still a big proponent of the Iran-Pak gas pipeline. Natural Gas is the cleanest fossil fuel available to man.

Re: Tax on CNG

New Cars...are they still coming with factory installed CNG kit?

How many CNG station licenses were issued after Musharaf?

what other genius ways govt. is using to phase out CNG? other than 1-2-3 days of shutdown of CNG stations, increasing tax.
Khadam e Aala ki CNG busses tau khu khatay may gaye na.

Re: Tax on CNG

I think it's a good idea to phase this damn thing out so that more gas is available to the industrial sectors of the country.

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That was a bad idea of Shahbaz Sharif, like the others during the present tenure. When he knew that the situation of gas is not so good then why did he go for CNG buses in the first place?

Re: Tax on CNG

The buses that are coming from Turkey, are they also CNG-driven?

Re: Tax on CNG

They should be khadim e aala driven :hmmm:

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There was a news sometime back that only 50 or 55 out of 200 CNG busses are on the roads due to CNG shortage(i think it was DAWN).
Rest of the busses wil rot and parts will be stolen later under the protection of CM Punjab.
If PMLN came in to power in punjab next time someother chahaita will enjoy the komishion.... raal mill kay khatay hain...unity ki saab saay bahtar misaal.

Re: Tax on CNG

Some professor in Pakistan posted a study online, outlining how the increase in natural gas by commuters resulted in oil being used in the industry, which raised electricity prices. Like others have said, I think natural gas should go to industry first, and commuters second, if at all.