ECC to impose complete ban on company fitted CNG kits
Karachi: The Economic Co-ordination Committee (ECC) of the cabinet is likely to impose a complete ban on company fitted CNG kits/cylinders in locally manufactured vehicles in order to discourage the increasing demand of CNG for automobile consumption and to ensure availability of gas for the households.
According to Alfalah Securities Limited, The Ministry of Petroleum and Natural Resources, being responsible for a massive increase in CNG consumption, has serious concerns over gas availability as the fertilizer and power sector are unable to operate on their installed capacity, causing dreadful consequences to the society. The Petroleum Ministry has informed that the consumption of CNG has increased at an annual growth rate of 35% despite a ban on opening new CNG stations which is primarily a consequence of the price differential between petrol and CNG.
The ministry has also proposed that the imports of CNG cylinders would be banned while; the public transport vehicles would be exempted from this ban. Alfalah Securities Limited expects a ban on company fitted CNG kits would result negatively for the automobile manufacturers as their sales would drop significantly.