The government is likely to fix provisional Re-gasified Liquefied Natural Gas (RLNG) price for CNG stations at $13 per Million British Thermal unit (MMBTU), officials said.
The officials said that Sui-Northern Gas Pipelines Limited (SNGPL) has expressed willingness to provide gas to all those CNG stations in Punjab which are not defaulter. The official added once the Petroleum Ministry approved provisional RLNG prices for the CNG stations gas supply to all those CNG outlets which are not defaulters it will be restored.
"Before the gas suspension to CNG stations of Punjab GIDC was a part of the price and every CNG station received GIDC from end consumers in their prices but now they are trying to avoid depositing the levy in national kitty", the official added.
Officials said that before courts decision on GDIC the CNG stations collected billions of rupee on account of GIDC and they did not deposit it in the national kitty. Now owners of CNG stations are making hue and cry on the issue as any tax imposed by the state on any sector has to deposit in the national kitty but the association is trying to make it a political issue to avoid depositing billions of rupee in national kitty.
The Ministry of Petroleum and Natural Resources has fixed provisional RLNG prices for the independent power plants at $12.8 per MMBTU, but the IPPs have refused to purchase the commodity at $12.8 per MMBTU until Oil and Gas Regulatory Authority or any other authority approve it.
IPPs have made following observations over the provisional pricing: (i) Provisional price of 12.8 can't be acceptable until OGRA notifies or any authority acceptable to NTDCL. (ii) The payment mechanism will only be adopted by the IPPs if acceptable to NTDC. (iii) For new arrangement NTDCL and ministry of water and power may be taken onboard and formalised the arrangements through legal documentation.
The Oil and Gas Regulatory Authority (OGRA) is also responsible which did not issue new notification of gas prices for CNG stations after court verdicts against the levy so responsibility can not be fixed on CNG association alone, the officials added.
The All Pakistan CNG Association (APCNGA) on Tuesday expressed serious reservations over GIDC Act terming it discriminatory.
In a statement issued here Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA said that the Act will not treat different gas consuming sectors on equitable basis while recovery of GIDC of the past years and mark up is illegal.
He said that CNG sector is ready to pay GIDC conditionally if the cess imposed few years back is not recovered, uniform tariff is imposed on all the gas consuming sectors and pricing mechanism for the CNG industry is improved.
He said that gas supply to the CNG stations discontinued since seven months should be restored immediately while pricing should be streamlined as the cost of inputs including gas, electricity and wages have gone up substantially in the last three years while the CNG prices have been kept the same.
He said that majority of the CNG stations are closed forcing many owners to the brink on disaster therefore they cannot be burdened by additional taxes.