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The All-Pakistan CNG Association has closed the CNG stations across Sindh in protest against Ogra's decision to sell CNG in kilo in the province. "We have met with federal minister and chairman Ogra to discuss the issue in Islamabad," said Shabiir Sulemanjee, chairman of the association's Sindh chapter. He said the determination of prices through the Ogra ordinance had lapsed, and the new prices had been fixed as per the Compressed Natural Gas (Marketing and Production) Rules, 1992, under the Mines and Oil Fields and Mineral Development Act 1948, which did not give any authority to Ogra to determine the retail prices.
According to the CNG Associations, Ogra violated the order of the Islamabad High Court regarding increase in the GCV values, which resulted in exorbitant increase in gas prices. They said that Ogra had resorted to discrimination in its price notification by allowing the stations in Region-1 (with 1,040 GCV) to sell CNG at Rs 75.82 per kg and those in Region-2 (with 950 GCV) at Rs 67.5 per kg.
He said the summary of the Senate report had directed Ogra to resolve the issues of pricing within two months, but more than six months had passed without Ogra complying with the pricing mechanism formulated as per the relevant laws and rules and regulations. He said the minister for Petroleum and Natural Resources was briefed on legitimate grievances who allowed the stations in Sindh to sell CNG in litre like Punjab and Rs 48.2 per litre was fixed for Sindh according to Ogra's pricing formula.

Copyright Business Recorder, 2016

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