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The motorists in Multan have hailed the immediate step of Oil and Gas Regulatory Authority (Ogra) asking all CNG licensees to immediately withdraw the increase in the CNG price. They said that there was no justification for dealers to increase the CNG price by Rs 2.92 per kilogram.
On the other hand, Ogra has also contradicted that it has allowed revision of CNG consumer price across the country by Rs 2.92 per kilogram. President CNG Owners Association Malik Khuda Bakhsh has clarified that only Ogra can fix prices of CNG and no association was authorised to increase prices.
A spokesman of the Ogra had expressed annoyance over raise in CNG prices and stated that CNG licensee or their associations cannot legally increase the consumer price of CNG as a cartel.
However, CNG dealers have justified the recent increase in the price of CNG sold at different CNG filling stations by Rs 2.92 on the premise that the 9 to 11 percent increase in the operational costs as well as the inflationary impact.
They further argued that the Oil and Gas Regulatory Authority was not authorised to "interfere" in the regulation of the CNG prices as it was already a deregulated domain with each CNG brand name charging its own price. Dealers said that the price of the CNG was a deregulated subject and Ogra was not in the position to interfere in the issue in any case.

Copyright Business Recorder, 2006

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