Deadlock ends: Transporters, CNG union call off strike

Load shedding, CNG cess reduced; ban on CNG use in public transport suspended for a month.


Zafar Bhutta January 04, 2012

ISLAMABAD:


The All-Pakistan CNG Association (APCNGA) and transporters called off their strike in Punjab and Khyber-Pakhtunkhwa after successful negotiations with the petroleum ministry on Tuesday.


The APCNGA chairman Ghyias Paracha and Petroleum Secretary Ijaz Chaudhry made the announcement at a joint press conference after arriving at an agreement to review the gas load management plan for the CNG sector, reduction in Gas Development Cess (GDC) and suspension of an order relating to use of CNG in commercial vehicles for another month.

Following the negotiations, the government has reduced the duration of gas load shedding by eight hours per week and cut down the GDC rate by 10 percentage points to 50%, said the petroleum secretary.

The deadlock came to an end after Prime Minister Yousaf Raza Gilani and Interior Minister Rehman Malik intervened, the secretary said.

“We have also formed a committee to review the pricing formula to be tabled before the Economic Coordination Committee,” Chaudhry said, adding that a new pricing formula for the CNG sector would be implemented if the government gives a go-ahead.

The ban on CNG use in commercial vehicles has also been suspended for a month, he announced, adding that the Oil and Gas Regulatory Authority (OGRA) and APCNGA would jointly monitor and ensure public safety measures.

The time granted for safety inspection of commercial vehicles has also been extended from 15 to 30 days, he added.

While the government had an agreement to supply gas to industries for nine months, the supply was not stopped completely after that because there were interruptions during the agreement period, Chaudhry said. The supply has been switched off completely now, he added.

The government will not willingly destroy the industrial sector, given its contribution towards employment and production, the secretary added.

He further said that the development cess was imposed after consultations with all stakeholders, including the CNG association.

The cess formula has been applied across the board to end distortion in gas prices,” he added. The cess will now be imposed in two phases, following the CNG association’s demand, the secretary said.

Sources privy to negotiations said the CNG association demanded a withdrawal of proposed GDC on the CNG sector, but was refused by the petroleum ministry.

The secretary also reiterated that the government would not shut down CNG stations for a complete month.

Chaudhry appreciated voluntary investments made by the association to inspect CNG cylinders and added that Ogra would amend safety rules and regulations within 30 days.

The association chairman appreciated the efforts of petroleum secretary and minister “for taking steps to provide relief to the industry.”

(Read: Shutdown of CNG stations)

Published in The Express Tribune, January 4th, 2012.

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