Rational policy can keep CNG prices affordable: APCNGA
APCNGA says provision of gas on equal rates could help to keep the prices of CNG affordable.
The prices of CNG has been declined as compared to petrol on the directives of the Supreme Court after which legality of Gas Infrastructure Development Cess (GIDC) has become questionable, said Ghayas Abdullah Paracha, Chairman Supreme Council All Pakistan CNG Association and Central Chairman APCNGA Abid Hayat while speaking at a press conference here.
“Conspiracies are being hatched to destroy Compressed Natural Gas (CNG) sector, which will hurt millions and sink investments to the tune of billions”, they said in their joint statement.
They said that the Apex Court had directed to reduce price of CNG by Rs 20 but prices were slashed by Rs 31, which is equal to destroying the business of CNG filling stations.
Ministry of Petroleum and Natural Resources and OGRA didn’t reduce any tax and conveniently diverted the entire burden on CNG sector, which is absolutely unjust, they added.
Ghayas Abdullah Paracha said that nowhere in the world the production cost of any business is brought down to zero except Pakistan where this has been done in violation CNG Production and Marketing License by OGRA.
CNG sector is paying GIDC up to Rs 300 mmbtu while industrial sector is giving Rs 50 for the same which is injustice, he said, adding that we are being made to pay 500 per cent additional cess which if identical will help reduce gas price by Rs 13 per kg.
Paracha said that CNG prices were deregulated until 2008 but afterwards mistake of a federal minister get prices regulated while there was no mention of production cost in the whole episode.
He said that Petroleum Ministry has presented one-sided and wrong stance in the Supreme Court to defame and put an end to the CNG sector, which was a conspiracy.
