KARACHI: Running automobiles on pressed natural gas (CNG) against petrol to reduce travelling cost has actually lost its charm as some stakeholders say that the conserving has actually gone down to just five per cent while others claim it is nearly no.
CNG was released in Pakistan in 1992 with much excitement as an eco-friendly and alternative gas with a key objective to curtail costly fuel imports. For fast advancement of this field, the Musharraf government in 2002 revealed enormous motivations consisting of obligation waivers on CNG plant & devices, kits and cyndrical tubes. As a result, investors set up CNG terminals throughout the country amid thriving need for the fuel and also was it utilized to conserve over 50pc expense in comparison to running lorries on gasoline.
Nevertheless, with growing uncertainty over availability of CNG in the middle of extreme gas shortages combined with speedy walking in its rate, a large number of private cars and truck proprietors have actually moved to gas regardless of maintaining the cylinder and also set undamaged in their lorries
Petroleum restores its status a main fuel for automobiles.
“After the latest walking petroleum is selling at Rs123.30 per litre, but CNG still offers a conserving of 5pc,” asserts Ghayas Paracha, group leader of the All Pakistan CNG Association (APCNGA).
In Punjab and also Islamabad, CNG is being sold at an average price of Rs121 per litre. Regardless of really reduced financial savings business transportation owners as well as 20pc private cars and truck proprietors still rely upon CNG, he added.
Mr Paracha said the influx of used imported 660cc cars with EFI engines as well as high mileage advantage has additionally given a major blow to the need for CNG as these vehicles can not be transformed to gas.
The government enabled import of CNG kits and cyndrical tubes last year after preserving a long ban. With the flow of time; brand-new packages have been created for EFI engines, hence making certain high mileage than petrol yet customers are still shy to make use of these brand-new packages, he said.
APCNGA Organizer for Sindh Zone Samir Najmul Hussain stated gone are the days when personal auto owners used to conserve 50pc on using CNG against gas.
“Today, there is no conserving. Running the car on CNG as well as gasoline coincides,” he asserted, including that CNG sales of 15mmcfd in Sindh as compared to pre-Covid sales of 70-90mmcfd suffices to justify substantial switch over to petroleum.
He recalled that saving through CNG was 30pc when the gas was available at Rs123 per kg, and now running a vehicle on gas at a rate of Rs165-180 per kg in Sindh does not hold any type of attraction for the consumers.
Mr Hussain asserted that over 40 CNG outlets have actually closed in Sindh as a result of low turn over of vehicles making it difficult for the owners to maintain substantial expenditures of power bills, labour salaries etc
. He said CNG demand in Punjab is now 30mmcfd which was 170mmcfd in 2014 when neighborhood gas was being used. After shifting to RLNG in 2017, the CNG sales in Punjab were estimated at 60mmcfd.
Karachi Transportation Itehad (KTI) Head Of State Syed Irshad Hussain Bukhari said 95pc private large buses, mini buses as well as coaches were running on CNG when the gas was offered at Rs123 per kg a couple of months back.
“Now transporters have actually been changing to diesel after speedy increase in gas rate,” he claimed, declaring that 60pc public transportation is now on CNG and also 40pc on diesel as Rs165-180 per kg for gas is not possible for huge cars.” Complete big buses, mini buses and also coaches in Karachi are 4,500 approximately. Nevertheless, diesel price has risen to Rs120 now from Rs110 per litre in January.
In spite of no consent given by the Sindh federal government, public transportation owners have actually raised the prices by an ordinary Rs5 last month to counter the effect of increasing diesel and CNG costs.
A variety of rickshaw proprietors claimed that they have actually stopped utilizing CNG owing to sticking around anxiousness over non-availability specifically in winter and also even in summertime amid intolerable high costs.
However, customers are in a limbo. Formerly rickshaw proprietors used to charge greater prices attributing rising CNG prices. In the last few months, they have found an additional excuse to bill more cash citing rising gas costs. In January, gas was offered at Rs106 as compared to Rs123.30 per litre now.
A lot of the rickshaw owners are seen demanding extra money by guaranteeing the guests of driving rickshaw on gas rather than gas, while there are still a number of rickshaw proprietors that are still using gas as well as demanding higher costs. Regardless of using gas or gasoline, rickshaw owners require Rs500 for a 12-13 kilometres journey instead of Rs400.
Whether CNG conserves cash or otherwise, there has always been a dark side of using CNG for destroying petrol engines with the flow of time as no CNG engines have actually ever before been created until now by any type of foreign automobile assemblers. The money conserved by the customers on making use of CNG has actually lastly gone to waste owing to engine repairing after a gap of two to 4 years relying on extensive running of automobile on gas.
For 800-1,000 cc automobiles, the engine remake prices between Rs30,000-50,000 while it costs a lot more on 1,300 cc and also above vehicles.
Pakistan had seen document gas sales of 0.731 m tonnes in May in spite of early market closures as well as Eidul Fitr vacations, rising to 0.755 m tonnes in June and 0.81 m tonnes document high sales in July. In August, gas sales was 0.733 m tonnes. In July-August, petroleum sales rose by 10pc to 1.549 m tonnes as compared to very same period 2020. Diesel sales in July-August had actually swelled by 18pc to 1.390 m tonnes.