The Oil and Gas Regulatory Authority (Ogra) has worked out a new formula for the fixation of CNG prices. According to the new formula, the authority has fixed production cost of the commodity at Rs 5.75 per kg and reduced profit margin from Rs 11.2 per kg to Rs 2.95 per kg.
According to sources, the Authority submitted the formula before the Supreme Court here on Thursday and suggested abolishing 59 paisa depreciation cost of machinery, 8 paisa on lubricants, 59 paisa on provision of services, labour cost of Rs 3.3 along and Oil Marketing Companies (OMCs) charge of Rs 3.3 per kg for using their brand name if CNG facility and petrol pump were operating together.
Sources said that in accordance with the new formula, the gas price in Region-1, comprising Potohar, Khyber Pakhtunkhwa, and Balochistan, would be Rs 64.12 per kg against persisting price of 61.64 per kg, while in Region-II, comprising Sindh and Punjab excluding (Potohar), CNG price would be Rs 55.58 against current price of Rs 54.16 per kg.
Before the Ogra notification of October 25 this year, the CNG sector was getting Rs 20.8 per kg on account of operational cost, comprising eight components - electricity cost of Rs 10 per kg, 59 paisa depreciation cost of machinery, 8 paisa on lubricants, 59 paisa on services provision, labour cost Rs 3.3 along with Oil Marketing Companies (OMCs) charge of Rs 3.3 per kg for using their brand name if CNG facility and petrol pump are operating together.
Sources said that the authority had equalised the profit margin of CNG facility with petrol pumps. The Authority accepted a few requests of All Pakistan CNG Association (APCNGA) including Rs 6.48 per kg price increase of the commodity. APCNGA also requested Ogra to fix CNG operational cost at Rs 26 per kg which was not accepted by the authority.