LAHORE: The prices of all CNGs in Punjab and Sindh running on imported RLNG will be charged at higher prices effective immediately, the All Pakistan CNG Association (APCNGA) said in a notification on Saturday.
According to the statement, an increase of Rs15 per kg has been announced in Sindh whereas the natural will be sold at Rs8 per liter in Punjab.
The association said that the increase in prices was due to the increase in sales tax, expensive purchase of spot market and the appreciation of the dollar.
“We demand from the government that like petrol and LPG, sales tax on LNG imports should be reduced immediately so that the fuel of the poor can be made cheaper,” the statement added.
Earlier on Friday, the government notified an increase in the price of re-gasified liquefied natural gas (RLNG) by up to 16.5% for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) for September 2021, signaling a further increase in inflation in the country.
The RLNG price for September 2021 is almost 122pc higher than that for the same month last year when it stood at about $6.93 per mmBtu.
Pakistan imported two cargoes at the historic high price of $20 per mmbtu from the spot market in September. The price of gas under long-term contracts, however, stood at around $10 per mmbtu (or on an average 12.5% of the prevailing Brent price) in the month.
During the month, around 60-65% of LNG was imported through long-term contracts and the rest from the spot market.
According to a notification by OGRA, average delivered ex-ship (DES) price for Pakistan LNG Limited (PLL) stood at $13.105 per mmBtu for September this year, almost 27pc higher than that for August. PLL’s two cargoes were delivered at $8.45 and $8.687 per mmBtu because of long-term contracts, but its average price surged due to four spot cargoes at significantly higher prices between $15.20 and $15.50 per mmBtu.
The new prices of RLNG include charges of LNG terminals, transmission losses, port charges, and margins of the importers – Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL). The new weighted average sale prices of RLNG have been computed based on the 11 cargoes imported during the month of September 2021, including five cargoes by PSO and six cargos by PLL to meet the gas demands of SNGPL and SSGC consumers.
