CNG price likely to be cut by up to PkR 7.5/kg – Alfalah Securities Limited

Karachi, June 14, 2012 (PPI-OT): The government is likely to reduce the prices of Compressed Natural Gas (CNG) by PkR 7.5 per kg in Khyber Pakhtunkhwa, Balochistan and Potohar regions and PkR 6.90 per kg in Sindh and Punjab from June 16, 2012.

According to Alfalah Securities Limited, at present, the government has fixed CNG prices at 55% parity with petrol while a reduction in CNG prices would bring it down to a considerable level. According to a local newspaper, the government would reduce petrol prices by PkR 10.50 per liter from June 16, 2012.

Earlier in June, the petroleum ministry had reduced petroleum prices by PkR 3.39 per liter and a reduction of PkR 2.85 per kg was sought in CNG prices however, due to the ongoing brawl between the government and CNG association over an increase in Gas Infrastructure Development Cess (GIDC), the petroleum ministry had turned down the recommendation. Alfalah Securities Limited believes that these populist measures being adopted by the government, ahead of the election year, would give some relief to consumers and would ease off inflationary pressures on the economy.