10% surcharge on CNG to bring it at par with petrol – Alfalah Securities Limited

Karachi: The Petroleum Ministry has unanimously imposed a 10% surcharge on Compressed Natural Gas (CNG) prices effective from February 1, 2012 in a move to bring it at par with petrol prices, which as a consequence would reduce the consumption of CNG.

According to Alfalah Securities Limited, the Petroleum Ministry would also issue a notification in this matter by Thursday i.e. February 2, 2012. CNG prices, subsequent to the imposition of 10% surcharge, in zone one comprising of Khyber Pakhtunkhwa, Balochistan and Potohar region would rise by PKR 0.72 per kg to PKR 75.06 per kg while in zone two comprising of Punjab and Sindh would inch up by PKR 0.38 per kg to PKR 70.0 per kg. In terms of energy content, gas prices for CNG sector in zone one would rise by PKR 14.70 per mmbtu and in zone two by PKR 7.9 per mmbtu. Alfalah Securities Limited believes the switching of consumers back to petrol from CNG would result in increased sales for the Oil Marketing Companies (OMCs) where Alfalah Securities Limited expects Pakistan State Oil (PSO) would be the main beneficiary.

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