Another blow: OGRA recommends ban on new CNG stations

Proposes hefty increase in gas price, taking it to 90% of petrol rate.


Zafar Bhutta January 25, 2012

ISLAMABAD:


A task force, headed by Oil and Gas Regulatory Authority (Ogra) chairman, has recommended a complete ban on setting up new compressed natural gas (CNG) stations and taking CNG price to 90 per cent of petrol price, which may result in a 35 per cent rise in gas price.


Sources told The Express Tribune that the task force had finalised and sent a report on CNG sector to the ministries of petroleum, industries, interior and provincial governments for consideration.

They said the ban on new CNG stations had been proposed because of a mushroom growth in CNG outlets and gas demand, sparking fears of the worst-ever energy crisis in the country. At present, a temporary ban is already in place.

The other suggestion calls for an increase in CNG price from the present 55 per cent of petrol price to 90 per cent of petrol price.

In a bid to ensure safety of passengers, the task force has recommended that CNG kits and cylinders should only be fitted in the rear and on the roof of buses and wagons and not inside the vehicles.

Furthermore, regulators like the Explosives Department and Ogra should conduct proper monitoring of buses and wagons running on CNG.

It has recommended that workshops set up in the premises of CNG stations should only be allowed conversion of kits. Provinces should also take action against illegal workshops for CNG kits and cylinders set up outside the CNG stations.

The government has already slapped a ban on import of CNG cylinders and kits, aimed at discouraging consumption of gas in automobiles. “But the ban on import will encourage smuggling and illegal manufacturing of CNG kits and cylinders, which will put lives of people in danger,” a petroleum ministry official commented.

Meanwhile, representatives of a CNG association met automobile manufacturers on Wednesday, where the two sides decided to take up the issue of ban on import of CNG kits and cylinders with the government.

A participant of the meeting said people could not find certified kits and cylinders, therefore, they would avoid inspection of their vehicles.

“The proposed increase in CNG price to bring it close to the petrol price will be another step aimed at discouraging the use of CNG in vehicles,” an official said, adding this would trigger protests from CNG station operators, who want to protect investments worth billions of rupees.

Talking to The Express Tribune, All Pakistan CNG Association Chairman Ghayas Paracha said they had ended protest after government assurance that CNG price would not be raised.

“Ogra is a regulator and has no powers to make policy, so the suggestions of the task force have no legal basis,” he said. However, he supported the proposal that CNG kits and cylinders should be fitted on the roof of buses instead of inside the vehicles.

Published in The Express Tribune, January 26th, 2012.

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