The tariff of Compressed Natural Gas (CNG) is likely to be surged by Rs 7 to Rs 8 from January 1, 2010. Ghayas Abdullah Paracha, Central Chairman of All Pakistan CNG Association (APCNGA) told Business Recorder on Wednesday that the Oil Gas Regulatory Authority (Ogra) is going to revise the gas tariff by 18 percent, which would escalate the CNG tariff by Rs 7 to Rs 8.
He said that the revised CNG tariff would be expected at Rs 54 to Rs 55 per kg, which would definitely tarnish the concept of providing cheaper fuel to the 2.5 million motorists. He said that the association has observed countrywide strike to prevent the government of increasing gas tariff but the concerned authority has so far not given positive response in this regard.
When contacted, Malik Khuda Baksh, Chairman of CNG Stations Owners Association of Pakistan (CSOAP) slammed the APCNGA strike to restrain the government of increasing gas tariff, saying that the strike is not the only way to express resentment. He said that the association has weighted the impact of revising gas tariff according to that CNG would be increased by Rs 7 to Rs 8.
Sources told Business Recorder on Wednesday that the summary in this regard has been moved to the Oil Gas Regulatory Authority (OGRA) and demanded to call a meeting for its revision and expected that the meeting would be convened between secretary finance, secretary petroleum and the representatives of CNG associations on coming Monday.
They said that association has been compelled to increase Rs 2 further in CNG tariff and sell it at Rs 46.5 per kg to meet the running expenditures, owing to costly electricity and added the Karachi Electric Supply Company (KESC) has revised its tariff by 27 percent for CNG sector.
They expressed apprehension over the issue, saying that the hike in electricity tariff would create negative impact on CNG industry and added that millions of rupees, which have been spent to get benefits in the sector by stakeholders, would be wasted.
To a question, they refused the impression that CNG stations are earning about 50 percent profit, saying that stations, which have finished its financing liabilities, are not earning more than 18 to 20 percent profits and added that several stations, placed in the metropolis, are shutdown businesses.
They termed KESC action as unjustified, saying that the notification of revised electricity tariff was issued on October 18, however, KESC has charged new electricity rates in September bills. It may be mentioned that the natural gas is being provided at very nominal rates including all levies, which is just Rs 15.51 per kg to CNG stations aimed to encourage cheaper and environment friendly fuel as an alternative of liquid fuel.