CNG kit prices down by 28 percent

[LahoreEstate]

MUHAMMAD ALI
KARACHI (April 08 2009): The downtrend in gasoline prices has also caused a decline in the compress natural gas (CNG) kit prices by around 28 percent. Landirenzo CNG kits for manual cars, which were earlier being sold at Rs 17500 per unit, are selling at Rs 14500, and CNG cylinders with 50 and 55 litre capacity can easily be installed at Rs 10000 and Rs 12000, which were earlier available at Rs 17,000 and Rs 19,000, respectively.

The price of CNG kits for automatic cars has reduced by some Rs 4000 per unit and is available at Rs 16 000, while CNG cylinders for these cars with 50 and 55 water litre capacity, which were earlier sold at Rs 25,000 and Rs 30,000 are now available at Rs 15,000 and Rs 21,000, respectively. The imports of CNG kits have also come down by 25 percent, which directly relate to the gasoline rates.

When contacted, prominent CNG kit importers said the price of CNG kits had surged three times during last eight months of last year and posted some 60 percent increased. But de-escalation in crude oil prices had caused decline in CNG kit rates, considerably.

The demand of CNG cars has also significantly shrunk after climb down in petrol price in the international market. They termed it as an alarming situation for the industry, saying that motorists prefer gasoline to CNG, putting the industry at stake.

In reply to a question, they said the government has imposed high taxes on locally manufactured and imported vehicles. Besides, commercial banks have almost stopped auto financing, which restrained people from buying new vehicles.

However, several retailers of CNG conversion kits said that importers were using delaying tactics in providing kits, aiming at increasing the demand. "Though the CNG kits industry is facing hard times, it is not up to that extent where industry would completely shut down", retailers said.

They said that Landirenzo has established its CNG kits assembling unit in Pakistan to cater the market demand, which caused decline in its imports by some 30 percent. Huge number of substandard CNG kits are openly being produced at Gujranwala. They urged the government to take stern action against CNG kit counterfeiters, who are playing with human lives

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