The government has refused to reduce gas sale price of Compressed Natural Gas (CNG) sector along with reduction in different taxes imposed on the sector. Two high-level meetings were held on Monday. The first meeting was held at Oil and Gas Regulatory Authority (Ogra) head office which was attended by senior officials of Petroleum Ministry, Finance Ministry, Ogra, representatives of CNG association and other stakeholders.
During the meeting, Saeed Ahmad Khan Chairman Ogra slammed the CNG association saying that the latter has started a media campaign against Ogra, adding that the CNG body wanted the Ogra Ordinance, 2002 done away with. In the middle of the meeting, Ogra chairman boycotted the proceedings in protest and left the venue. Later, he was brought back by other officials. During the meeting it was revealed that the Petroleum Ministry was collecting Rs 6.5 per kg of CNG from consumers on account of cross-subsidy. The ministry is providing billions of rupees to the fertiliser sector being collected from CNG sector on account of cross-subsidy. The representative of CNG sector urged the government to abolish cross-subsidy.
Later, a second meeting was held at Petroleum Ministry which also remained inconclusive as petroleum and finance ministries refused to reduce gas sale price for CNG sector without any change in taxes on the industry. Talking to Business Recorder, Ghiyas Abdullah Paracha, Chairman, Supreme Council All Pakistan CNG Association (APCNGA) said his body has already submitted a comprehensive CNG pricing formula to keep the business viable and save masses from the impact of high price of the product.
He said Ogra should accept any of the options to fix the prices immediately. "We are opposed to any upward revision in the prices of CNG, but a just profit is our right," he added. Majority of the business run on the basis of 30 percent profit while those with transactions to the tune of billions can operate on reduced rates, he said.
Giving details, he said CNG sector should be provided gas on the rates sold to other sectors. He said fertiliser sector is getting gas for Rs 116.27 per Million British Thermal Unit (mmbtu) and paying Rs 100 as Gas Infrastructure Development Cess (GIDC), adding that if the government sells gas to CNG sector on the tariff charged from fertiliser sector it will bring prices down to Rs 48.15 per kg in region-I and Rs 46.80 per kg in region-II. Giving details of second option, he said industrial sector is paying Rs 460 per mmbtu and Rs 50 as GIDC which if imposed on CNG sector will bring prices to Rs 69.79 per kg in region-I and Rs 66.63 per kg in region-II.
Paracha said private power producers are getting gas for Rs 460 per mmbtu and paying Rs 100 as GIDC. Uniform gas rates and taxation will result in CNG price in region-1 at Rs 72.47 per kg and in region-11 Rs 70.00 per kg, he added.
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