Consumers in K-P have been paying Rs7 extra on per kg of CNG. PHOTO: FILE
PESHAWAR: The provincial government plans to take up the issue of gas infrastructure development cess (GIDC) with the federal government. Consumers are being charged a higher GDIC on compressed natural gas (CNG).
Officials from the energy and power department told The Express Tribune they are taking up the issue with the Federal Ministry of Petroleum and Natural Resources to determine the reasons behind overcharging of GIDC from CNG consumers of K-P.
K-P falls into Region-1 which also includes Balochistan and Potohar which pay around Rs13 per kilogramme of CNG as GIDC, while the value of GIDC for Region-II which includes Sindh and Punjab is around Rs9 per kilogramme.
The province produces 340 mmcf of natural gas per day and still pays Rs7 above the natural gas rate in Region-II because of GIDC. The province is also more surcharge on CNG despite being a producer of natural gas.
The energy and power department has already registered its complaint to the Oil and Gas Regulatory Authority (OGRA) and asked for the matter to be investigated.
The K-P government claims that the Sui Northern Gas Pipeline Limited (SNGPL) owes Rs7.2 billion to the province since the K-P consumers have been paying extra GIDC on CNG.
“The ministry has to decide an equal GIDC value for both regions,” said a senior official of the department. “Furthermore, it has to direct SNGPL to return the extra money it has charged from our consumers and we calculate it at Rs7.2 billion for the extra charges,”
“We want the money to be adjusted in tariff for the domestic consumers as it would be a more convenient way to compensate for the extra money the consumers of CNG have been paying because of GIDC rates,” the official said.
The GIDC is charged on CNG and not on the domestic natural gas consumers and is used for gas infrastructure development in the country.
“Since the CNG stations are making their profits and the CNG-operated vehicle owners are paying for the GIDC, they need to be reimbursed and the easy way for this is to adjust the Rs7.2 billion in the tariff for domestic consumers,” the official added.
Published in The Express Tribune, July 16th, 2016.
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