The Oil and Gas Regulatory Authority on Friday decided to take strict punitive action against over 50 CNG stations that were found involved in charging price more than the notified rates. OGRA dispatched teams to inspect CNG stations throughout Khyber Pakhtunkhwa and Punjab that paid surprise as well as random visits to over 150 CNG stations. Out of the total inspected CNG filling stations over 50 were found overcharging in violation of the relevant rules and regulations.
Recently, owners of Compressed Natural Gas (CNG), while increasing the price of the gas in the range of Rs 10 to Rs 15 per kg in Punjab and Khyber Pakhtunkhwa, said that prolonged power outage and massive gas loadshedding for their stations have brought the CNG sector on the verge of collapse and they were even unable to pay the salaries to their staff.
Business Recorder has observed in the twin cities of Rawalpindi-Islamabad that CNG station owners are charging consumers Rs 84.9 to Rs 88.6 per kg against Rs 74.25 per kg, which is fixed by the Oil and Gas Regulatory Authority (OGRA). However, it was also observed that some of the CNG outlets are selling the commodity at Rs 74.25 per kg.
According to a spokesperson of the OGRA, timely intervention of the authority has warded off a crisis-like situation and saved the public from overcharging, a unilateral and unlawful act on part of CNG station owners. "Immediately, after receiving complaints of overcharging, OGRA Chairman Saeed Ahmed Khan convened an emergency meeting of the authority which was attended by Vice Chairman/Member (Oil) Sabir Hussain and Member (Gas) Aamir Naseem and others decided to take stern action against the reported violations," the spokesperson said.
Member (Gas) Aamir Naseem supervised the entire OGRA operation against the violations. The OGRA also issued a public notice in newspapers warning CNG station owners against the illegal activities in terms of charging higher price than the official notified rates. In its public notice, the OGRA had already made it clear that it was being served as prior notice to the violating CNG stations and they would not be given any show-cause notice before the punitive action.
According to the spokesperson, the authority was appreciated of the role of the CNG Association in co-operating and convincing their members to revert the price back to the notified tariff level. The Association in its meetings with the Authority has assured that they would ensure that none of the members would overcharge the CNG price in any case.
Ghiyas Abdullah Paracha of All Pakistan CNG Association (APCNGA), while talking to Business Recorder said that CNG owners have taken the decision because of protracted loadshedding, enhance gas suspension for CNG stations, which a few weeks back was available for 6 hours a day to CNG outlets and now was being supplied only for two days a week, increased taxes on the industry and electricity bills during past one year.