The Ministry of Petroleum and All Pakistan CNG Association (APCNGA) have agreed on a differential of 40 percent between the prices of petrol and Compressed Natural Gas (CNG). This was decided in a meeting of the APCNGA and Petroleum Ministry here on Thursday.
According to a written agreement, the ministry has concluded an arrangement on the following terms with CNG Association:
(I) CNG retail price including Gas Infrastructure Development Cess (GIDC) will be fixed in such a manner that it will result in price at 60 percent of retail petrol price.
(II) No additional GIDC will be levied over and above the agreed parity price differential agreed herein.
(III) The load management of CNG will be reduced by 8 hours with effect from June 16, 2012 ie two full days and 16 hours. (IV) The above parity will be maintained in pursuance of existing CNG price computation formula approved by Oil and Gas Regulatory Authority (OGRA) and (V) this agreement will be maintained for on year commencing June 16, 2012.
Later, Ghyas Abdullah Paracha Chairman APCNGA addressing a press conference told media men that in accordance with the above agreement the government will reduce CNG prices on June 16. He said that CNG sector was consuming only 8 percent of the total available gas against the claims of a certain sector, which asserts that the CNG was consuming over 15 percent of the gas. He said that 322 Million Cubic Feet per Day (MMCFD) gas is being consumed by the CNG sector, which is facilitating around 4 million vehicles across the country.
Paracha added that the CNG association has rejected the government's proposal to bring CNG prices at par with the petrol prices, if the government is allowed to do this CNG sector would collapse, besides losing of billion of rupees investment made by the investors in the sector. "The Petroleum Ministry has assured APCNGA that the agreement would be presented before the next meeting of the Economic Co-ordination Committee of the Cabinet," Paracha maintained.
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