The CNG and transporters associations on Tuesday decided to withdraw their strike call in Punjab and Khyber-Pakhtunkhwa after assurance from the government to meet their demands including reduction in cess on CNG and eight hours weekly gas outage.
The transporters also announced to end strike after successful negotiation with Petroleum Ministry, which was also attended by Chairman Ogra, representatives of CNG association and Transporters association. In a joint press conference, APCNGA Chairman Ghyias Paracha and Secretary Petroleum Ijaz Chaudhry announced to end strike after reaching agreements on review of gas load management plan for CNG sector, reduction in Gas Development Cess (GDS) and suspension of order relating to use of CNG in commercial vehicles for one month.
Addressing a press conference, Secretary Petroleum Ijaz Chaudhry said that after successful negotiation with CNG Association and other stakeholders, government had reduced rate of Gas Development Cess (GDC) by 10 percent. Earlier, government imposed GDC by 60 percent that has now been reduced to 50 percent.
"The duration of gas load shedding has also been reduced by 8 hours a week," he said adding that deadlock came to an end after intervention by Prime Minister Syed Yousuf Raza Gilani and Interior Minister Rehman Malik. "We have also formed a committee to review pricing formula to be tabled before Economic Co-ordination Committee (ECC)," he said, adding that new pricing formula for CNG sector would be implemented if government gives a go-ahead signal.
He further maintained that government has now suspended order relating to ban on use of CNG in commercial vehicles for a month. "We have decided that the decision of Oil and Gas Regulatory Authority (OGRA) regarding ban on filling of CNG in Public Transport vehicles would be suspended for 30 days," he said, adding that the public safety measures would be jointly monitored and ensured by OGRA and the APCNGA.
He said that during negotiations held on Monday, government has agreed to give 15-day time to ensure inspection of commercial vehicles that has now extended further to 30 days. He said that industry has nine-month agreements for supply of gas, but gas supply has been interrupted during nine months' period. However, gas supply is off now to industry," he said adding that government could not destroy industry keeping in view the labour and production in winter season. "The industry will also collapse if government suspends supply to all industrial units," Chaudhry added.
He also said that government has imposed GDC in consultations with all stakeholders including CNG association. "The cess formula has been implanted across the board on all sectors to end distortion in gas prices," he added. He also said that government does not want to kill CNG sector from Karachi to Khyber as it is very important for providing relief to the consumers.
He also reiterated that government would not shut down CNG stations for complete month. He said that Ogra would amend rules and regulations regarding safety within 30 days to ensure safety of the masses. He maintained that CNG association has voluntarily invested to conduct inspection of CNG cylinders and "we appreciate the step".
Chaudhry said that government has decided to impose Gas Development Cess (GDC) on CNG in two phases following demand of CNG association. Sources said that CNG association representatives demanded to withdraw proposed GDC on CNG sector but the Petroleum Ministry refused to follow this demand. Paracha said that "we appreciate the efforts of Secretary Petroleum and Minister for Petroelum Dr Asim Hussain for taking steps to provide relief to the industry.