Gas prices frozen for domestic consumers

Govt determines oil and gas prices, OGRA only implements policies.

LAHORE: Oil and Gas Regulatory Authority (Ogra) Chairperson Uzma Adil Khan has said that the government has frozen gas prices for domestic consumers as part of its socio-economic agenda.



"It is the jurisdiction of the government to determine sale prices of oil and gas. Ogra is just a regulatory body which ensures implementation of the policies evolved by the government and is also playing the role of a bridge between licensees and the state," she clarified.

She was speaking at the Lahore Chamber of Commerce and Industry (LCCI) along with her team members.

Khan insisted that Ogra was established to provide effective and efficient regulations, foster competition, encourage investment, protect public interest and ensure level playing field in the petroleum and gas industries.

She said petroleum product prices were set through a calculation methodology including taxes. After calculation, the government announces the petroleum product prices while gas prices are set after conducting public hearing.

She revealed that a new mechanism for the processing of applications for licences was being evolved. All details will be available on Ogra's website where the applicant will also be able to get information about the status of his application.

Replying to a question, Khan said the issue of advanced tax on liquefied petroleum gas (LPG) import was related to the FBR and it should be taken with the authorities concerned.

She gave assurances to LCCI members that reservations of oil marketing companies about the 2016 rules would be taken up with the government. "No penal action will be taken till amendments are made to the rules."

LCCI Senior Vice President Amjad Ali Jawa pointed out that at the start of the current fiscal year, the government had ruled out any increase in gas prices, but it had been learnt that Ogra had recommended a price hike.

"Any hike in gas prices will hit the industry hard, therefore, this idea should be dropped," he said.

He argued that 5.5% advance tax had been imposed on the import of LPG, which would cause shortage of the fuel in coming winters. "This advance tax must be withdrawn in the larger interest of the industry and masses."

Jawa also complained about repeated increases in petroleum product prices over the past couple of months, which had increased the input cost of industries. He called for passing the benefit of reduction in international crude oil prices on to consumers.



"There is a dire need to keep balance in prices of oil and gas to prevent the industry from loss," he said and asked Ogra to take stakeholders on board and keep in view the ground realities while formulating its policies.

Published in The Express Tribune, April 8^th, 2017.

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