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Aug
12

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KARACHI: All Pakistan Compressed Natural Gas (CNG) Association announced on Wednesday that all CNG outlets in Sindh would keep their economic activity shut indefinitely from toady against the highhandedness of Oil and Gas Regulatory Authority (OGRA).

A delegation of All Pakistan CNG Association Sindh, CNG Dealers Association, CNG Owners Association and Sindh CNG Association, led by Abdul Sami Khan, Malik Khuda Bux, Shabbir Sulemanjee and Abdul Rafi Abbassi respectively, met with Deputy Director OGRA Altaf Shah Karachi to voice their concerns over consistent and continuous violation by OGRA regarding determination of CNG retail prices in Sindh.

But, instead of resolving the issue, the OGRA officials threatened to take stern action against CNG stations if they would not reverse sale of CNG in kilogramme, Sulemanjee told the Daily Times.

He said that delegation explained to OGRA official that fixation of CNG prices through OGRA Ordinance has been lapsed, thereby CNG prices are now fixed under Rule 13 of Compressed Natural Gas (Marketing and Production) Rules, 1992 under the regulation of Mines and Oil Fields and Mineral Development Act 1948, which does not give authority to OGRA to determine CNG retail prices.

The CNG dealers viewed that OGRA has violated the order of Islamabad High Court regarding increase in the GCV values build by the gas distribution companies due to liquefied Natural Gas (LNG) Molecule Injection in Sui Southern Gas Company (SSGC) pipeline resulting in an exorbitant increase in the gas prices, which increased by Rs 4 to Rs 5 per kilogramme (kg).

They said CNG Association has also filed a petition before Senate Pakistan where all the concerns of CNG pricing distortion were duly accepted by OGRA Officials.

The summary of the Senate report directed OGRA to resolve the issues of CNG pricing within two months but more than six months have passed but OGRA was yet to comply with the pricing mechanism according to relevant laws and rules and regulations, delegation lamented.

CNG stations in Punjab are selling CNG at Rs 48.20 per litre with no GIDC levied and Sales Tax charged at 5 percent only, whereas CNG stations in Sindh are being charged Rs 20 per kg in terms of GIDC and Sales Tax. However, CNG stations in Sindh are selling CNG at Rs 48.20 per litre.

CNG associations in Sindh along with the members and core committee have unanimously decided to close down their businesses until OGRA provides them relief.

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