TUESDAY DECEMBER 25: CNG pricing formula: consensus eludes committee

ISLAMABAD: The special committee to determine a viable and acceptable formula on Compressed Natural Gas (CNG) prices Monday failed to reach consensus due to absence of petroleum ministry representatives. The committee meeting held with an aim to settle the CNG price issue was presided by Law Minister Farooq H Naek for evaluating the CNG pricing formula forwarded by the Oil and Gas Regulatory Authority (Ogra).
Dr Asim, Prime Minister's Advisor on Petroleum and the Secretary Petroleum did not turn up. Ogra Chairman Saeed Ahmed presented the new formula to the committee according to which CNG price in Region-I which comprises Khyber Pakhtunkhawa, Balochistan and Potohar, would be fixed at Rs 72.20 per kg and in Region-II, which comprises Punjab and Sindh, would be fixed at Rs 63.76 per kg.
Speaking to media following the meeting, Law Minister Naek said CNG prices would be determined in the light of the Supreme Court order, adding that fixation of the commodity prices is the responsibility of Ogra. He said the committee was determined to settle the issue as early as possible. He said the committee has directed all the stakeholders to prepare working papers on the issue and submit it before the next meeting which would be held on December 26.
Farooq Naek expressed his anger over the absence of Dr Asim Hussain and Dr Waqar Masood from the meeting. The committee directed the Ogra to present the details of the audited accounts of 11 CNG stations along with the name of the company which conducted the audit, adding that the CNG association's own audited accounts may also be presented before the committee. Replying to a query, the minister said restricting the use of the commodity to only Public Service Vehicles (PSVs) is the domain of the Petroleum Ministry. The committee besides settling a reasonable price of the most favoured fuel is also reviewing other related issues.
The committee was formed by the Economic Co-ordination Committee to frame policy guidelines for an amicable CNG pricing formula. The meeting was attended by Ogra Chairman Saeed Ahmed Khan, DG Gas Shahab Alam, Secretary Cabinet Nargis Sethi, CNG Association representative Ghiyas Paracha and the Chairman CNG Dealers Association Abdul Sami Khan.