CNG kit prices drop

Pakistan’s compressed natural gas (CNG) kit importers have also been affected by the global economic downturn. As a result of the downtrend in gasoline prices, there was a 28% decline in the prices of compress natural gas (CNG) kits. CNG kits for manual cars, sold for Rs14,500 (US$180.35) in April, down from Rs17,500 (US$217.66) per unit and 50 to 55 liter capacity CNG cylinders cost Rs10,000 (US$124.38) and Rs12,000 (US$149.25) to install. They used to sell for Rs17,000 (US$211.44) and Rs19,000 (US$236.32), respectively. The price of CNG kits for automatic cars has dropped by some Rs4,000 (US$49.75) per unit and is available at Rs16,000 (US$199), while CNG cylinders for these cars with 50 and 55 water liter capacity, which were earlier sold at Rs25,000 (US$310) and Rs 30,000 (US$373) became available for Rs15,000 (US$186) and Rs 21,000 (US$261), respectively. The imports of CNG kits have also come down by 25%, accompanying low gasoline rates. Importers termed the drop in prices as an “alarming situation for the industry” as motorists prefer gasoline instead of CNG to fuel their cars, putting the industry at risk since the demand for CNG-powered cars has also significantly shrunk. (April 8, 2009)