Strike action by the majority of compressed natural gas retail stations in Pakistan since June 6 has resulted in state-owned retailer Pakistan State Oil seeking prompt gasoline imports, a source close to the matter said Monday.
The closure of these CNG retail stations has led to a massive switch by consumers to use gasoline rather than CNG, resulting in a 25-30% hike in gasoline sales at PSO retail stations, the source said.
PSO's gasoline stocks have also fallen sharply to two weeks' demand, he added, without elaborating on actual figures.
While PSO is currently discharging one 35,000 mt import cargo gasoline into its Keamari terminal at Karachi, a need to maintain stocks at current levels in the event of a drawn-out strike led it to seek additional prompt cargoes.
It is now seeking 35,000 mt of non-oxygenated, 87 RON gasoline for delivery over June 16-18 into Keamari terminal, Karachi, with the tender to close June 12, remaining valid until June 13.
PSO's next import cargo from its previous purchase is scheduled to arrive in Karachi on June 20.
The majority of Pakistan's CNG retail stations -- with the exception of PSO stations -- was shut June 6, to protest against the proposed tax by the federal government to be implemented from the new fiscal year starting July 1, Platts reported earlier.
The government proposes to impose a Gas Infrastructure Development Cess raising tax on CNG to Rupees 300 ($3.20)/MMBtu from Rupees 156/MMBtu.
"The new tax is unjustified and will raise the price of CNG by Rupees 12 to Rupees 15 per kilogram," Ghiass Parcha, chairman of the All Pakistan Compressed Natural Gas Owners Association said.
