But the expected increase will definitely give a blow to CNG station owners throughout the country, as the overhead cost is increasing due to electricity charges.
The gas tariff should be frozen for a period of three years to sustain the operational cost as the charges on electricity have created problems for CNG station owners, he pointed out.
The government should not protect its gas development surcharge (GDS). The new gas tariff would be adjusted from the GDS like petroleum development levy as the government has done in petroleum prices recently. Gas prices should not linked with the price of crude oil, he added.
Since 1998, there is a phenomenal growth witnessed in the CNG sector and 636 stations have been established throughout the country, Malik said, adding that about 250 more CNG stations is in the process of construction with an investment of about $330 million while $100 million have been invested in the CNG sector.
Over 600,000 vehicles have been converted to CNG, besides providing employment to over 10,000 people, he added.
The increase in gas prices would also send a wrong signal to potential investors planning to invest in the country's CNG sector, because various foreign companies are surveying in Pakistan to invest in manufacturing of CNG equipment, kits, etc.
On the other hand, the government is also keen to convert all public service and private vehicles to CNG within a shortest possible time to minimise environmental hazards.
Earlier, the business community had urged Ogra to fix gas tariff for a period of three years on the basis of National Electric and Power Regulatory Authority's decision of freezing the power tariff of Karachi Electric Supply Corporation (KESC) for seven years.
In this way, the overhead costs on manufacturing of various exportable products and goods would come down and they could easily compete in the post-WTO regime, especially when regional exporting countries are getting subsidies from their respective governments in power and gas for their industrial sector.
The gas tariff should not be allowed to increase as domestic consumers are already suffering from such utility pressures and especially when the gas is indigenously produced