Ogra announces increase in CNG prices

Price for Region 1 will be Rs74 and Rs69 for Region 2.


Web Desk January 01, 2013
Price for Region 1 will be Rs74 and Rs69 for Region 2. PHOTO: FILE

ISLAMABAD: CNG prices for Region 1 and Region 2 have been revised and are now Rs74 and Rs69 respectively, announced Oil and Gas Regulatory Authority (Ogra) Chairman Saeed Khan on Tuesday.

Earlier, CNG was priced at Rs72 for Region 1 and Rs68 for Region 2.

The decision was taken during a meeting of Economic Coordination Committee’s (ECC) sub-body, which was headed by Law Minister Farooq H Naek.

All Pakistan CNG Association has rejected the new prices and demanded restoration of old profit margin.

Adviser to the Prime Minister on Petroleum Dr Asim Hussain, while speaking to media, said the authority to set prices rests with Ogra and that the grieved party should come and discuss a solution to end the current crisis.

He added that old profit margin is unacceptable.

Ogra reduced CNG prices after the Supreme Court announced a short verdict on CNG and petrol price assessment case, directing the authority to formulate a new formula while keeping the consumers’ interests in mind.

COMMENTS (4)

Guy Fawkes | 11 years ago | Reply

Cost of Gas (variable cost) =17.83

Cost of Electricty,HR etc =5.77 Operating Cost(audited) =23.06

Gas Dev Tax =10.57 Gas Infrastucture Dev Tax =9.18

25% GST (Compounded Over Taxes) =9.40 Total Taxes (10.57+9.18+9.4) =29.15

Price of CNG (23.06+29.15) =52.21

If sold at RS 54.6 Profit Margin (54.6-52.21) =RS 2.39/KG Margin % (2.39/23.06) =10.36%

If sold at RS 69 Profit Margin (69-52.21) =RS 16.79/KG Margin % (16.79/23.06) =72.8%

no business (other than politics) could even come close to this margin. :)

if you don't know about operating cost ( hamaray ikhrajaat) please visit http://en.wikipedia.org/wiki/Operating_cost

Operating Cost is calculated by Cost of goods sold + Operating Expenses

naseer | 11 years ago | Reply

@ all cng shall not be given to public and private .thats it.no one has the right to debate about what is good and bad after supreme court verdict.....

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