ISLAMABAD: The Economic Co-ordination Committee (ECC) of the Cabinet on Tuesday allowed Trading Corporation of Pakistan to dispose of 700 metric tons (MTs) imported stock of sugar and constituted a committee to decide about the regulating authority of the CNG sector.
Sources said that there was a consensus on a proposal made to the ECC for fixing per kg CNG price comparable to 80 per cent cost of per liter petrol, however, the problem was whether Petroleum Ministry or Oil and Gas Regulatory Authority (Ogra) was constitutionally and legally empowered to regulate the CNG sector. They said that the committee was constituted to determine the regulator of the CNG sector and moving a summary in this regard.
However, a statement said that the ECC discussed in detail the guidelines for CNG sector submitted by Ministry of Petroleum and Natural Resources and observed that it is an important issue of public interest and there is a lack of unanimity among the stakeholders to agree on a pricing formula acceptable to all. The ECC decided to constitute a committee with the Law Minister as Chairman and Minister for Petroleum and Natural Resources, Chairman Ogra and Secretary Cabinet Division as its members to formulate guidelines to determine pricing formula in consultation with all the stakeholders. The said the committee will submit its report in the next ECC meeting for final approval.
On a summary moved by the Ministry of Commerce, the ECC allowed TCP after discussing all the factors to dispose of 700 MT in an appropriate and transparent manner. The Ministry of Petroleum and Natural Resources submitted a summary to the ECC for allocation of natural gas to the fertiliser sector from alternate sources for a short-term till the time they develop new discoveries and lay dedicated pipelines.
The meeting was informed that fertiliser industry is located in close proximity of two fields, Mari and RetiMaru, and gas supply can commence from the new fields in a short period of time. The fertiliser industry can develop the said gas fields and will lay their own dedicated pipelines for supply of natural gas at an agreed price mechanism.
The ECC formed a committee comprising Secretaries of Petroleum and Natural Resources and Water and Power to present a detailed report to the ECC on an agreed mechanism to determine how natural gas from new discoveries should be developed and dedicated to the power and fertiliser sectors. The ECC also approved in principle to allocate natural gas to fertiliser plants from new dedicated sources for long-term. The ECC further directed Ministry of Petroleum and Natural Resources to devise a detailed mechanism for long-term allocation of gas to fertiliser sector.