The special committee of the cabinet again failed to chalk out an acceptable CNG pricing formula, paralysing stakeholders directly attached with the sector since October 25. The committee meeting held with the objective to settle the CNG price issue here on Wednesday was headed by Farooq H Naek, Law Minister, which evaluated the CNG pricing formulas forwarded by the Oil and gas Regulatory Authority (Ogra).
The committee did not reach a consensus decision regarding the fixation of viable and acceptable Compressed Natural Gas price formula. The meeting was attended by Dr Asim Hussain, Prime Minister's Adviser on Petroleum, Waqar Masood, Secretary Ministry of Petroleum, Saeed Ahmed Khan, Chairman Ogra, officials of Finance Ministry and representatives of All Pakistan CNG Association (APCNGA).
The Petroleum Ministry refused to reduce the gas tariff for CNG sector, while the Ministry of Finance also rejected the APCNGA's request to reduce the rate of different taxes on the CNG. The committee on its failure on reaching any decision over the fixation of CNG prices decided to constitute a sub-committee comprising the Law Minister, Adviser on Petroleum, Chairman Ogra and Secretary Cabinet to formulate new policy guidelines for the determination of CNG prices.
Ogra has sent its detailed working paper on CNG pricing to the sub-committee of the ECC with a single point agenda to resolve much delayed CNG pricing issue. The regulator in its working paper has said if CNG price is linked to the petrol price then commodity (compressed natural gas) will be become more expensive.
They said the regulator has suggested three prices of the commodity if it is linked with the per litre price of petrol. Ogra has said that with 60 per cent price parity between Petrol and CNG prices, the per kilogram price of CNG will witness a raise by Rs 29/kg, with 65 percent parity between the prices of both fuels the CNG price will increase by Rs 44/kg, and with 80 percent price parity, CNG price will go up by Rs 59/kg across the country.
According to Ogra's CNG pricing formula with 60 percent petrol parity, CNG price will go up from Rs 61.64 per kg to Rs 92.48 per kg, with 65 per cent petrol parity, new price of commodity will be Rs 108 per kg and with 80 per cent petrol parity, CNG price will reach Rs 121 per kg in the country. Ogra also submitted its version on the petroleum ministry's CNG policy along with the audit report of Avais Hyder Nauman Liaquat, Chartered Accountant, to the committee. This chartered firm which had conducted audit of 11 CNG stations is likely to take part in the committee meeting.
Speaking to the media following the meeting, Law Minister Naek said CNG prices would be determined in the light of the Supreme Court's order, adding fixation of the commodity price is the responsibility of Ogra. He said that the committee was determined to settle the issue as early as possible. Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA after the meeting talking to reporters said that his body has held 28 meeting during the past 2 months with the government, but still the matter is not resolved.
He urged the government to address the issue before December 31, saying that thousands of people working at CNG stations have become jobless. He said CNG sector was paying Rs 44 per MMBTU high tariff as compared to fertiliser sector and Rs 26 as compared to industrial sector. The committee has assured the APCNGA that the government would reduce gas tariff of CNG sector.