Gas shortage: Govt rules out one-month CNG station closure

Ban on filling CNG in public transport suspended for 15 days; CNG association to continue strike in KP, Punjab.

ISLAMABAD: As countrywide protests due to the unavailability of Compressed Natural Gas (CNG) paralysed routine life in parts of the country, the government on Monday finally ruled out the closure of CNG stations for an entire month and also suspended a ban on filling CNG in public transport vehicles for 15 days.

But the move aimed at pacifying the All Pakistan CNG Association (APCNGA) fell short as the association decided to continue its strike in Khyber-Pakhtunkhwa and Punjab until its demands were met.

Addressing a press conference, APCNGA Chairman Ghiyas Paracha said that the government should announce once a week CNG load-shedding till February 15 and also demanded the government to withdraw the imposition of the Gas Infrastructure Development Cess (GIDC) on CNG. He added new taxes should be rolled back and there should be no ban on fuelling of public transport. The chairman, however, went on to assure that the CNG association would cooperate in implementing the gas load management programme.

Sources told The Express Tribune that the Oil and Gas Regulatory Authority (Ogra) had banned CNG filling in public transport vehicles in haste, following pressure from the interior ministry.

While talking to the media after a meeting with Paracha, Petroleum Secretary Ejaz Chaudhry said that most of the demands by the association had been met and therefore the strike by the association was now unwarranted, appealing to the association for an end to the strike. The meeting was also attended by Chief Commissioner Islamabad Capital Territory, acting chairman Ogra and senior officers of the ministry of petroleum and natural resources.

“The Ministry of Petroleum has also assured that CNG stations would not be closed for the month of January,” Chaudhry said, adding that the three days a week gas load-shedding plan would be implemented and be reduced to a two days a week in the summer season.

Also, CNG stations would remain closed as per the mutually agreed gas load management plan, according to a statement released by the petroleum ministry. The statement went on to add that gas supply would stabilise after the month of February and supply to CNG sector would improve.

“We have decided that the decision of Oil and Gas Regulatory Authority (Ogra) regarding ban on filling of CNG in public transport vehicles would be suspended for 15 days,” Chaudhry said, adding that the public safety measures would be jointly monitored and ensured by Ogra and the APCNGA.

He said that Ogra would amend rules and regulations regarding safety within 15 days to ensure the safety of the masses and also “appreciated” voluntary steps taken by the CNG association to conduct inspections of CNG cylinders.

“Almost all demands of the CNG association have been met and only the demand regarding gas pricing is left to be addressed,” the petroleum secretary said, adding that a high-powered committee comprising senior representatives of the Finance Division, Petroleum and Natural Resources Division and Ogra has been formed to look into the issue of gas pricing and submit a report within four days.

The petroleum secretary went on to add that the government had decided to impose the new cess on CNG in two phases, following demands of CNG association. Sources told The Express Tribune that CNG association representatives demanded a withdrawal on the proposed GIDC on CNG but the petroleum ministry refused to follow this demand.

Countrywide protests

Protesters across the country clashed with police and major cities were paralysed as thousands of people demonstrated on Monday over severe gas shortages and price hikes. Public transport was halted in Islamabad, where police used tear gas and sticks on a crowd of more than 1,000 people.

Protesters carrying sticks burned tyres and raised anti-government slogans, at the spot where a rally was held last month in which demonstrators set fire to armoured police vehicles.

More than a dozen small protests were also held across Khyber-Pakhtunkhwa, while most natural gas stations were closed in Punjab under a partial strike.

Queues snaked from petrol stations as cars stocked up on dwindling gas stocks.

In Multan, up to 1,500 people, mostly transporters and CNG dealers, held a demonstration and blocked roads in protest.

(Additional input from AFP)

Published in The Express Tribune, January 3^rd, 2012.