The CNG conversion kits prices reached historic peak after witnessing 10 percent further increase following the fresh hike in petroleum products. The prices of CNG kits were earlier increased twice soon after the increase in gasoline rates, which had been raised four times during the last two months. Several retailers of CNG conversion kits alleged importers, saying that delaying tactics are being used in providing adequate supply of kits aimed at increasing its rates by creating huge demand. The demand of CNG cars has been increased after rising petrol prices, with the country witnessing massive conversion of gasoline cars into CNG during the last two to three years. According to official statistics report, Pakistan has officially been declared as a leading CNG fuel consuming country where over 1.6 million cars are being entertained by around 1,700 CNG stations while 4,000 CNG stations have been approved to be installed across country. Despite all these facts, CNG conversion kits importers have illegally increased its prices and marketing it at about 10 percent more rates after the fresh surge in petroleum products, retailers said. To a question, they said that importers were hoarding CNG conversion kits and its cylinders to further increase its prices. They said that CNG conversion kits rates were stable in international market and the supply of kits from manufacturers was also sufficient. They said that Landirenzo CNG kits are currently being sold at Rs 14,000, which before March were available at Rs 10,000 when petroleum prices were not increased. They added that the CNG cylinders with the capacity of 50 and 55 liters are being sold at Rs 17,000 and Rs 22,000, which were earlier being sold at Rs 10,000 and 15,000, respectively. "Importers have illegally increased CNG conversion kits rates by 10 percent soon after the price surge in petroleum products, repressing consumers by an artificial inflation," they said. When contacted some prominent CNG conversion kits importers said, "after the massive increase in gasoline rates, the consumers are more interested to convert their vehicles into CNG, due to which demand of CNG kits has also gone up." They further said that inadequate supply of CNG kits from manufacturers was the major reason behind the increasing rates of the kits. It may be mentioned that Landirenzo, a leading CNG conversion kits manufacturers has planned to establish its production unit in Pakistan aimed at catering the market demand at affordable rates. The decision was taken after evaluating the company's revenue figures, which reveals that out of the total revenue of 164 million euro generated in 2007, 30 million euro came from Pakistan. Copyright Business Recorder, 2008