Islamabad - The prices of gas at CNG stations throughout Punjab zone and Islamabad have been reduced by Rs 5.30 per litre. The decision will take effect from today (Wednesday).

At a meeting of the officials of Sui Northern Gas Pipelines (SNGPL) and All Pakistan CNG Association on Tuesday, it was agreed to cut the price of CNG to Rs 41.90 per litre from Rs 47.20 per litre.

The new prices will be applicable to the RLNG based CNG stations, located in the Islamabad Capital Territory and Punjab.

This is the second consecutive decrease since March 1. Earlier this month, the CNG price in Punjab was cut down to Rs 47 per litre from Rs 55.40 per litre.

The new CNG prices will be around 20 percent cheaper than petrol.

Out the total 3,495 CNG stations in Pakistan, 2,400 are located in Punjab zone. After intensification in the gas crisis in 2014, the gas supply to the CNG stations of Punjab was suspended.

However, the supply was partially restored in June, 2015 under new rules.

The restoration of gas supply to Punjab’s CNG stations could be made possible through the imported Re- gasified LNG (RLNG).

According to the new policy, RLNG will be provided to those CNG stations that furnish additional deposits of Rs 1.2 million.

So far 950 CNG stations in Punjab zone have been converted into RLNG, and hopefully the number will go up soon.

A press release issued here said that keeping in view the low import price of LNG, the SNGPL had agreed to reduce CNG prices in Punjab.

“The decision will save the CNG sector from collapse, and will help in creating more jobs and attract new investment,” the statement said.

“The reduction in CNG prices is good for the country’s economy, as it will reduce the oil import bill and pollution,” the statement added.

The CNG Association has claimed that Pakistan’s CNG industry will soon reclaim the lost title of world’s largest CNG industry due to the support of the government, backed by the vision of energy managers.